It’s a deadlock! Housing markets across the country have almost ground to a standstill with the number of new listings being put up for sale in a slump and mostly because vendors fear that they won’t be able to find anything to buy.
Many sellers are also reluctant to put their homes on the market in winter only exacerbating the problem – thinking that spring is the best time to sell. In actual fact, it makes more sense to list your property for sale in winter when there is less competition and a greater chance of getting a stronger result than coming to the market in spring with more competition and when buyers can be more choosy.
The savvy seller is planning to sell now for a premium while demand still far outweighs the level of stock and even negotiating a delayed settlement, then buying at settlement time when it’s spring and there are more properties on the market. They hope to buy at a keener price when the supply is greater and they have more choice! It’s the ‘sell high – buy low’ strategy.
Sadly these forward thinking sellers are in the minority. Most vendors are all thinking it’s a good time to sell but not a good time to buy which is only compounding the deadlock especially when more and more buyers are joining the backlog!
In fact, sellers know they’ll get a brilliant price as we’ve seen fantastic price growth over the last nine months, but that can equally put a hesitation into the sellers’ minds knowing there might not be much out there for them to buy. Some are even waiting to find their new property before launching theirs to the market.
Imagine if all the property sellers were on the market now! I’m sure it would put an end to this deadlock situation!
We know we have fewer listings on the market in Newcastle for the same time last year and the numbers are continuing to drop. According to the latest Domain Group figures, new listings over the four weeks to June 20 in Sydney fell 7.8 per cent while Melbourne’s new listings dropped over the past four weeks by a thumping 28.7 per cent.
Let me know today if you’re thinking of selling anytime soon. I might just have another seller waiting ‘off market’ who has your dream home!