When the market is uncertain or slows down – as is the situation in Melbourne right now – smart buyers act!
Instead of being negative, headlines such as “Lower clearance rates!” and “High volume of properties on the market!” can be triggers for buyers and investors to take to the marketplace. Especially when key, underlying economic factors are still favorable. In summary, astute buyers know that there is a good opportunity hiding behind the negative talk.
Currently, the property market is taking a hit in a lot of areas simply because of uncertainty. Another way of looking at it is to reflect on the typical 10-year cycle property. The median house price increases we have seen over the past decade are not sustainable. A “slow down” or plateau is to be expected. Nothing would suggest there is a “bubble about to burst”, although none of us have a crystal ball. What we do know is that, as a buyer, now is a good time to do your research, gather your information and step up to the plate.
Purchasing in an uncertain market takes courage, but the rewards can be high; a bit like capitalizing on a “bear run” on the stock market. Advisors will always recommend a medium to a long-term approach to investing and this applies to property investment as well.
Real Estate Graphic Design Melbourne of CEO Enzo Raimondo recently made the following comment on the market: “Some commentators, often with an air of expectation who use statistics to suggest an imminent collapse, need to take a longer-term view and look beyond what happened in the market last weekend or last month.”
“Like any broad-based market reliant upon the participation of thousands of people each week, it is bound to fluctuate over the short term, but due to most household’s wealth being in housing and the fact that most people only buy and sell infrequently, what really matters is the medium to long term performance.”
There is value in coming back to the undeniable fact that our population is growing faster than our housing supply. At the end of the day, people need to live in houses and Melbourne’s supply is struggling to keep up with demand. Our tight rental market supports this with vacancy rates still under 2% across the city and outer suburbs.
Fadi Saad, Director of Sanctuary Lakes Real Estate made the point that “the current market offers opportunities for buyers who, if they do their homework, may have a once in a decade chance to buy and buy well !”