In simplistic terms, a seller’s market is when prices are going up, and a buyer’s market is when prices are going down. Another strong indicator has to do with the number of people attending inspections and auctions.
When you see less buyers looking and inspecting properties and fewer people at auctions it’s a buyers market and when you see an over supply of buyers at inspections and auctions, this means it’s a sellers market!
Last year was definitely a sellers market. There was an over supply of buyers for the number of available properties on the market and everything was selling and for a strong price. Even if it looked like a knockdown! In 2021 buyers were suffering from FOMO – the Fear Of Missing Out – and in most cases were offering in excess of the asking prices just to outperform their competition and secure their new home. But things started to change around December 2021 for Newcastle and Lake Macquarie. The cooling of the property market here has been so gradual that most potential sellers haven’t even realise it’s happened. Some still think they will be able to achieve a very high selling price believing there are enough out-of-area buyers to purchase their home.
In fact, the only homes that fall into this category are what I call the ‘AAA properties’! These are the ones that are well maintained with not a thing to do, beautifully presented and even styled, they are well promoted and marketed and have a great agent who is excellent at negotiations. These properties are still selling for premium prices and reasonably quickly.
Sadly all other properties are languishing on the market and are having to reduce their asking price. The only exception to this is are the properties that are priced to sell in todays market. A market that has fewer buyers and with more properties yet to come to the market creating more competition for the sellers!
At any time you wish to discuss your property or the Real Estate market in general, contact us so that we can help you achieve your Real Estate goals and dreams.