I am keen to buy a property, but I don’t know how to tell a boom market from a buyer’s market. Can you give me some tips? Amy H. Port Macquarie.
A. Every buyer, whether you are a first home buyer, serious investor or seasoned property owner, should take the time to get in touch with the local property market. This will ensure decisions are based on your knowledge of the prevailing conditions, rather than a stab in the dark.
Start your research by looking at the volume of properties for sale in the area and the asking price. Then find out how long properties are staying on the market and what they are selling for. There are a number of websites that provide the kind of sales data you need. Here are two for you – www.rpdata.com and www.apm.com.au.
You know the market is ‘hot’ when the length of time properties are on the market dramatically shortens and you see plenty of quick sales. When property sells quickly at higher prices, then this is what the industry calls ‘boom’ times.
A so-called ‘buyers market’ is usually evidenced by an abundance of properties being for sale. An over-supply of properties means more sellers need to try to win the hearts and wallets of potential buyers, which can result in keener negotiations, particularly if the property has been for sale for some time.
Whether you buy in times of boom or bust, there is always an opportunity to buy well and sell well. To do so you need to know your market, so when you are buying you will know the right home for you at the right price when you discover it!
Answers are general comment, and readers should always seek their own independent professional advice.
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Greg Trembath is Principal/Licensee at
Greg Trembath Real Estate.
Licensed Real Estate Agent – Licensed Auctioneer.