inner & middle ring western suburbs update
If you are a first home buyer or entry level property investor, now is the perfect time to commence your property search. We have officially (or unofficially) entered the perfect point in the market where supply and demand is even. Which means property prices are neither falling, nor sky rocketing, providing favourable buying conditions for buyers looking to buy a fairly priced property.
Let’s take a closer look at what is happening in this market right now.
Compared to 2021, a higher number of entry level properties are failing to sell at auction. This provides home buyers and investors with a few advantages;
- Certainty around pricing
- Ability to make conditional offers
- Fair and reasonable pricing (instead of the crazy runway prices we saw late last year)
Offers before Auction could be beneficial for first home buyers
Furthermore, vendors are increasingly open to offers prior to auction. This is due to a lack of sufficient buyer numbers required to create a highly competitive auction. Knowing that motivated buyers can be lost to other properties, agents and vendors are now eager to strike while the buyer is hot. Rather than wait through a 4 week sales campaign and risk losing enthusiastic buyers, vendors are more wiling to entertain pre-auction offers.
This is great news for our clients as we welcome the opportunity to secure a property outside of the heightened environment of an auction.
More opportunities to buy homes via private negotiation
Buying via private negotiation allows us to achieve a sales price that is supported by the data rather than be driven by the emotion other bidders might bid with on auction day. Comparable sales, market movements, local growth factors and demographic trends all play a part in analysing the appropriate price for a property. This market allows us to pay fair market value for a property and in some instances below market value depending on the suburb and property.
The other advantage our clients are enjoying is your ability to submit an offer with conditions that protect them.
Fairer prices in reach for first home buyers and entry level investors
Recent auctions have yielded fair and reasonable price outcomes for both buyers and sellers with less buyers willing to overpay for property. Which in turn makes for perfect buying conditions for those ready to enter the market.
These new market conditions should make buyers feel more comfortable preparing for auction or private sale as the pent up demand of 2021 has abated and the flow on effects of FOMO and cheap money seem to have passed.
The good news takeaway for buyers in the lower end of the market is that pricing has settled and we can have more faith in the price range provided by agents coupled with less emotional driven competition in the market.
Want a competitive advantage when buying your first home in Melbourne?
If you would like to talk to us about how we can help you save time and money on your next property purchase you can book a time to discuss your needs by calling 03 8680 2377 or email [email protected]. Our experienced advocates are dedicated and ready to help you uncover that hidden gem you have been looking for.
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