One day you are a seller, the next day a buyer. We sat down with Wollongong real estate agent, Tim Bartlett to talk about the state of the market in the Illawarra – and what vendors should know about ‘relative pricing.’
It’s a fact of life that real estate markets swing between a seller’s and a buyer’s market. For the last few years, the Illawarra market has favoured sellers, as vendors have enjoyed bumper double-digit growth year on year.
That has now changed.
Rising interest rates, tighter lending standards and low auction clearance rates have unsettled vendors and the market has cooled. The buyers are now in control.
But Bartlett and Co. Property principal and Wollongong real estate agent Tim Bartlett says that vendors should keep their eye on the bigger picture.
“I would caution anyone against trying to time the market, but for those who are looking to make their move, the old property market rules still apply: buy and sell in the same market,” he said.
Tim says that vendors who fear that they have missed the boat should remember that there are potential bargains to be snapped up.
“After all, one day you are a seller. The next day you are a buyer,” he said.
“Remember, there are multiple reasons that people sell aside from price: they need more room or the kids have moved out of home so they want to downsize; they want to move locations for work.”
He encourages people not to be spooked by headlines but to understand the relative pricing in the market.
“Buying and selling is such an emotional decision. If you sell and buy in the same market, then any loss you get on the sell side can potentially be made up with a similar price on the buy side.”
In a recent widely publicised plea to the RBA that their interest rate settings are starting to have an impact, Tom Panos said that buyers have moved from FOMO (fear of missing out) to FOOP (fear of over paying).
“He’s right. Sellers need to readjust their expectations and realise that they are in a market that both rises and falls,” Tim says.
“Selling in a buyer’s market really brings out the nuances in the market and vendors shouldn’t be deterred from listing.”
Give Tim a call on 0412 126 669 to have a chat about selling your property in a buyer’s market.