The days of long queues of buyers stretching down the footpath have been replaced by more manageable crowds of 8-10 groups now. However, we do get surprised by a strong turnout when those once regular ''queues to see a home'' make a rare appearance.
Only a short time ago, auctions were the ''gold standard'' to sell for a crazy price. However, within weeks auctions have been turned upside down as the once common 20+ registrations to bid have turned to the new normal of just four or five registrations…on a good day, that is. Many agents are being left surprised to then only have one to two buyers actually bid during the auction. You will most likely have noticed that many homes are selling before auction - this is typically an indication that interest has not been as strong as the sellers and agent had expected.
Buyers are now looking at homes with a magnifying glass, looking for key must-haves and standout features. When the market is strong, everyone wants to get involved, and buyers are happy to ignore the things that make properties less desirable. Naturally, this momentum, though, helps drive prices up. This momentum is starting to change as the pendulum swings from a seller's market to one favouring the buyer.
Buyers are sensing a change in the winds. They are more aware of the attributes they want and are willing to hold out to find those properties.
These new search patterns will likely become the norm in 2022 and will surprise many agents who have been accustomed to a heated market.
Offers are also starting to decrease in total, and dollar value as buyers test the waters with newfound confidence to negotiate. So, while some sellers are trying to work out why their neighbour's property sold for $200,000 over the price guide in December and they're not, other sellers have taken the adjustment within their stride as a change that was bound to happen sooner or later.
For an experienced agent, this is the 'normal market' where buyer relationships mean everything and where you now get to use your negotiation skills to create a win:win for both seller and buyer.
Over the last month, investors and flippers have been returning to the market as prices start to soften in all suburbs. This is usually a strong indicator that they’re seeing opportunities present themselves with more competitive prices.
Don't get us wrong, at LaneCampos, we have found that homemakers and investors still bought with confidence last month. Some standout properties we recently sold:
A new suburb record in 37 Wentworth Street, Georgetown, creeping past the old record of $1.33M a few weeks past the previous suburb high.
A neat period cottage at 35 Elizabeth Street, Mayfield, was one of those properties that surprised us with its queue of buyers down the pathway. A true renovator on a great street, this home sold for $903,000 after receiving multiple offers.
Over at 5 Nelson Street, New Lambton, we continued to see seriously strong buyer interest in this locale. A gorgeous four bedroom home attracted big interest with young families looking to move into the area to take advantage of the outstanding schools selling for $1,830,000.
We have also seen a rush of properties hit the market as owners try and 'cash in' the best possible price for their homes. At the same time, we're also noticing many local agencies starting to see their sales campaigns extend from the typical five days to three or four weeks of open homes…some even longer. Available properties will likely tighten in the coming months as homeowners reassess their next property move.
As an independently-owned agency, adjusting markets are easier to navigate with our strong buyer relationships and ability to quickly adapt processes to a changing environment. We do not need to check with 'head office' and apply for approvals to make any changes. Instead, we can push the green button with changes at any time to deliver optimum results for our clients. The coming months will be a challenge for small-teamed and franchised agencies as the changing market will demand quick pivots to deliver tailored strategies for better results. This is no longer a one-size-fits-all environment.