📊 JULY 2024 Real Estate Update: Adaptability remains crucial for agents and sellers
Damn the weather has been bitter but the number of new listings and sales data is showing the real estate market is thawing out….
In postcode 3977 there were 107 sales reported in July 2024, which is down 23% on July last year BUT… there have been 9.1% more properties sold in 2024 so far than there were at this same time in 2023, and while the market is not flying high the median house price is still up by 2.8%.
So… what do we expect to see in coming months?
Higher numbers of houses for sale. This is a given - we are heading into Spring which normally sees more activity, and we are beginning to see it playing out with appraisal numbers with home owners who ARE going to come to market (so not just getting a value update) higher than they have been for quite some time, and we are already working with a number of homeowners who are doing the prep work getting ready to get ahead of that Spring burst.
One of the things that has been holding people back from selling is that they haven’t been able to see what they would buy next, so they have been super hesitant about selling before they buy… this will change once they start seeing more listing activity.
But the flip side of this for sellers who are “waiting” will be that buyers have more choice… and when buyers have more choice we hit the price plateau where buyers will not be prepared to compete and stretch as much to secure a particular home when there are others that also suit.
So if they don’t get it for the price they offer first up, they simply move on to the next one - there’s little negotiation power from the sellers side - unless of course the property is unique and offers a distinct advantage to the buyer, that they value highly, such as maybe two master bedrooms or particular school zone etc.
The reality right now is there is no set “formula” for pricing houses and no predictability for how the market will respond to each property.
The market is in a continual state of change and no two campaigns are necessarily performing the same… or having the same outcomes.
So why is this? As with everything, it comes down to demand for the product style… so let’s say the most highly sought after home is a 4 bedroom 2 bathroom 2 living area home with double garage (which by the way is exactly the case)… the upgrades, location and even the direction the home faces will have an impact on demand. The higher the demand for the product, the higher the end price. But that’s not all - how the home is marketed plays a huge role in the outcome also!
No matter what is happening in the economy - interest rates etc. - people are still buying property - some seeing the current market as the ideal time to get into the market for the very first time with less competition and pressure and of course there’s always the life changes happening… the young growing family who are bursting at the seams and need a bigger home, the downsizers who are no longer wanting or able to keep up with all the maintenance of a larger older home and unfortunately some sadder reasons also. We as agents just have to be agile and pro-active in how we market each property to achieve the very best possible outcome for our sellers.
That’s if for the July 2024 market wrap - I'll see you again next month but if you have any real estate questions in the meantime give me a buzz - Jo Mooney - 0407 344 011