Home sellers need to align their expectations with buyers’ budgets
Competition is fierce for some homes but scarce for others, and he encouraged hesitant buyers to rethink when the housing market cooled in 2019 during the royal commission on financial services.
“It’s those who have had the courage to commit who have really reaped the benefits of short-term growth,” he said.
Jellis Craig Northcote manager Sam Rigopoulos had nine auctions to hold this weekend, his biggest Saturday ever, but some have already auctioned off in the boardroom after buyers made early offers.
He calls it a “two-market story,” where high-end Interior North homes in the $3-4 million price range are hotly contested. For example, 99 Keon Street, Thornbury, recently set a record $3.48 million for this once working-class neighborhood.
But the story is different for anything between $1 million and $2 million that has its position compromised or faces competition from similar listings, he said.
“They really need to be properly priced to be considered second best value and to be sold,” he said.
“There’s still plenty of strength for good homes out there, and the rest of the market needs to be fully aware if they’re not priced right, so they can sell.”
In Sydney, independent auctioneer Clarence White had planned a busy weekend of auctions, but some have already sold out or been delayed to allow time to generate more interest.
“We find that sellers who are price aligned well, and where properties have been price driven correctly, we get good traction and good competition,” he said.
“Where sellers have an unrealistic view of what it should be worth…these don’t sell.”
He said that while buyers are price sensitive, he continues to see competition at three to four bidder registrations per auction.
BresicWhitney managing director Thomas McGlynn said buyers were reluctant to pay more than the price for recent comparable sales.
He noted a home loan rule change last year that reduced the maximum amount most buyers can borrow by ensuring that buyers can manage their repayments to protect them and lenders from any future price hikes. interest rate.
“Our home traffic is up from where it was at the end of last year, there’s a pretty consistent number of people in the market,” he said, “[but] their appetite to pay more than what recently sold has certainly subsided.
“A lot of owners have now recalibrated and realized they have to take current market conditions into account.”