Over the past three months, Australia’s real estate market has seen a remarkable surge in home values across all 15 capital city and regional markets, with the exception of Darwin and regional Victoria, as per the latest CoreLogic data. A notable driver of this trend is the prevailing supply-demand imbalance, where the scarcity of available homes for sale fails to meet the robust market demand.
This year has witnessed a substantial gap between supply and demand, marked by a consistent shortage of available properties. For instance, during the four weeks leading up to July 16, the number of homes for sale in capital cities was down by 19% compared to last year and over 25% below the five-year average. This scarcity of supply has not only propelled prices upwards but has also ignited a sense of “fear of missing out” (FOMO) among potential buyers.
In numerous markets, prospective buyers are feeling the pressure to stretch their budgets as they fear losing out on suitable properties. With limited options, the urgency to secure a property is heightened, often leading to quicker decisions and potentially higher offers to secure a desired home.
Amidst this scenario, there is a glimmer of hope for buyers. CoreLogic’s data points to an “uptick” in new listings during June, a significant development given that listings typically dip during winter. This potential increase in supply could provide some relief to buyers by expanding their choices in the market.
However, while buyers await a potential surge in listings, it’s essential to have strategies in place to deal with FOMO:
- Establish Local Agency Connections: Beyond registering on major property portals for listing alerts, consider connecting directly with local agencies such as Mackay City Property. Many agencies prioritise communicating new listings to their registered clients before advertising them widely. Being among the first to learn about a new listing can be a significant advantage.
- Express Interest Immediately: As the market moves swiftly, let agents know of your Interest as soon as possible. Delaying expressing Interest might lead to missed opportunities, as other motivated buyers could move quickly.
- Craft Competitive Offers: Start with an amount close to your maximum budget when making an offer. Agents often assume the first offer isn’t the final offer, so leaving some room for negotiation is wise. If feasible, present your offer in writing, waive the cooling-off period, and emphasise your pre-approved financing. Additionally, explore ways to accommodate the vendor’s motivations, such as flexible settlement terms.
- Auction Strategy: If participating in an auction, begin with a lower bid to maintain flexibility. Bid with confidence, articulating your offer clearly and assertively. Express the amount in full rather than incremental figures.
- Embrace Acceptance: Recognise that destiny often plays a role in property acquisition. If you miss out on a property or multiple properties, accept that the right opportunity wasn’t meant to be. Often, a more suitable property emerges shortly after an under-bidder experiences disappointment.
As the Winter season progresses and Spring approaches in just five weeks, buyers can anticipate a potential shift in the market dynamics. Traditionally, Spring witnesses a surge in properties being listed for sale, making it one of the busiest seasons in Mackay real estate. While the current Winter scarcity might be disheartening for some, trusting the prospect of upcoming opportunities is essential.
The Australian property market’s supply-demand imbalance is driving up prices and fostering buyer urgency. While an increase in listings offers hope, employing strategies such as swift expression of interest and competitive offers can help navigate the current market dynamics.
In conclusion, these insights shed light on Australia’s housing market challenges and potential strategies for buyers to navigate the present environment. With a hopeful eye on the upcoming Spring season and a willingness to adopt a pragmatic and patient approach, buyers can position themselves to make informed decisions while pursuing their dream homes.
