Real Estate News

Current market lull very temporary

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The lull over recent weeks in the property market will only be a temporary reprieve for buyers and is more related to seasonal than financial influences, according to RE/MAX WA Managing Director, Geoff Baldwin.

“After a slower December and early January we are already beginning to see a fresh influx of buyer activity and expect February to be a bumper month for our sellers”, he said.

“Although a booming market tends to stay strong through the holiday period in normal conditions buyers and sellers do often take a break from their activities during this time.

“We can confidently expect the remainder of summer through spring to be buoyant and for buyer competition to return in strength and quickly.

“Price does however remain a relevant factor in WA as with around 13,000 properties for sale compared to around 8,000 this time last year, only those that are being marketed with an effective pricing strategy will capture buyer attention.

“The age old approach of deciding on a dream price then adding five or ten percent to allow for negotiation is simply no longer effective, is a sure way to keep buyers away and inevitably results in a lower end sale price.

Sellers should be looking for agents who can demonstrate more effective marketing and pricing methods that take advantage of early interest and which ensure price is maximised.

“Overpricing is the biggest factor in properties not selling and in them becoming stale and sellers should keep in mind one of the most asked questions by buyers when they are interested in a property is “How long has it been for sale?”.

What the buyer wants to hear is that is has been on the market for a long period because they know that they have a much better chance to negotiate a lower price.

“The bottom line is that the market is a long way from bust, it will continue to fire up as the year progresses however only those properties that are competitively priced will attract viewings and offers” Mr Baldwin said.

ENDS

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