Welcome 2021.
The market is hot.
I haven’t seen this much active buyer participation since the Mining Boom. Yes, I have been selling real estate long enough to clearly remember the heady days between May and September of 2006.
It is important to note, even back then, with stock levels below 5000 in the metro area, “low doc” lending and rapid population growth, the height of the boom was relatively short lived.
It is likely that we will experience the same phenomena this time round.
I have potential Sellers holding off, waiting for “more growth”. My fear for them is that the best chance, to get the best price, is while the market is most heated.
Anecdotal observations show some parts of Perth have had a massive step change in price from the lows of early 2019 but are now holding at the new levels.
Of course while Sellers hold off they are just contributing to the shortage of homes for sale, this ensures a better market for those that do choose to sell.
2021 may indeed prove stranger than 2020.
The unpredicted excessive consumption of cars, consumer goods and real estate is a study in economic theory and behavioural science that will keep academics busy for years. At a professional level it is fascinating. But for many in our community it is making meeting their everyday needs of buying or renting a home incredibly difficult.
Today, the whip hand lies with the Sellers and for the first time in many years they can feel confidant going to market.
The question is how to maximize return.
Agents have many weird and wonderful ways of dressing up the sale transaction; EOI, Set Date Sales, Openn Negotiation, Auction (Unless Sold Prior) and any number of propriety methods that are the “best way to sell your home”. Just remember at the end of the day the strategy must appeal to as many Buyers as possible. That’s where the money comes from. Many methods seem to pose an impediment to buying!
If you are a potential Seller please get in touch for an informed conversation about how the market works at this unique time and how you can feel assured of the best possible sale outcome.
Derek Baston
0417 99 23 24
