Market Update by John Cunningham
March 13, 2018 / Written by Rich Harvey
By Guest Blogger, John Cunningham, Managing Director, Cunninghams Real Estate
After a phenomenal 2017 for our team at Cunninghams, we now find ourselves in the first quarter of a new year and already things are happening in a positive way with strong sales across all price sectors and very strong buyer activity at our open homes. Positive decisions are being made as more stock on the market means more choice and being a well-balanced market it instills confidence and surety about making n appropriate move.
The start of a new year is always a good time to reflect on the year that was and share with our clients the changes we saw in our local real estate market over the past 12 months.
A varied market operated for much of 2017 and with the boom effectively peaking in April we saw a sharp decline in buyer confidence for much of the remainder of the year until late spring. With the typical influx of property over the final quarter we witnessed a healthy appetite in the marketplace from buyers, albeit moving at a more moderate and discerning pace. The pressure was off and buyers became far more selective in their choices. There was less competition at Auctions and this reflected in lower clearance rates and a price declining environment. But its not all bad news as this adjustment period after an extended boom period is normal and can last up to around 12 months. I am pleased to say that the indications from the market are showing that the price decline bottomed out late last year after seeing around a 5% adjustment from the peak prices of the first Quarter of 2017. So, we have come out of the adjustment period in very good shape considering the 50% to 70% gains experienced over the preceding 4 years.
As the new year begins, we are seeing a new normal when it comes to the local real estate landscape and it’s all good news if you go about it the right way.
We have as usual been helping more people FIND LOVE and LIVE on the Northern Beaches as it’s what we do best. Getting the best possible result for our sellers is only part of the experience we offer as helping people make the best decisions is what really sets us apart.
For buyers and sellers alike working with trusted advisors in the Property Market is critical as it can a be a bit of a minefield out there and buyers especially need to be aware of certain legal factors that can be confusing for the inexperienced.
The first consideration is that an Agent must have a Contract for Sale of Land in their possession for the property they are selling before they offer it for sale, it is an offence to show a prospective buyer a property without one and it is also an insightful indication into the agent you are dealing with if they engage in this practice.
The second relates to the concept of Gazumping, which is where an owner has accepted an offer to purchase from Buyer A but then gets a higher offer from buyer B and either sells to them or wants to continue negotiating with booth buyers. This situation is not only totally legal in NSW but the legislation requires Agents to engage in it as the agents are required by law to submit all offers to purchase a property to a vendor prior to the exchange of contracts. They are also required by law to notify any party who has made an offer to purchase a property that another offer has been accepted prior to contacts being exchanged. This could clearly promote further offers and a competitive environment and as such could lead to gazumping. The essence of this situation is that if buyers are aware of the legal requirements of an agent and do not make assumptions on what is right or wrong they will be in a far better position to be informed and as such make better decisions.
Be informed, be prepared and talk to your trusted Property Professional for the right advice.