February 17, 2022

#21- A Buyer's Market Is Here - How can buyers make the most of it?

15 minutes

Everyone is already talking about it, so what exactly is a 'buyers market'?

We haven't had one in a while..

In its simplest terms, a buyer's market is when the conditions of the market suit the buyer's rather than the seller's of properties.

These conditions can be things like..

An oversupply of property listings for the number of buyers looking. eg, more houses on the market mean more choice for the buyer and less negotiation power for the sellers.

Policy changes eg, the new CCCFA policy has scared a lot of buyers away so there are fewer buyers to compete with and fewer buyers looking at the listed properties resulting in sellers needing to lower their expectations of price (this is long overdue)

Interest Rates, eg now that interest rates are going up there are fewer people with the FOMO mindset and more with the holy sh*t can we even afford a mortgage mindset. This means, like the point above, fewer buyers and less competition for the same number of properties.

All of these things compile to give some very good buying opportunities. This does not mean that house prices will drop (I don't see that happening).

More so it means that there will be less pressure to get an offer in because fewer houses will go to multi offers. There will be less chance of you overpaying for an average property (hopefully the real estate agents relay honest price expectations to their clients). You might even be able to bag a bargain on those fringe properties like the ones in slightly less desirable areas, or those that have building/CCC issues or are just plain ugly.

But, don't get me wrong, the good properties will still sell so if you want those ones you'll still need to be a bit aggressive in your search.

The first step is to make sure you are ready to buy; that comes in the form of a pre-approval so you can pull the trigger on a purchase when that right-priced almost perfect property comes along. Email us [email protected] to start the ball rolling

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By Aaron Cattell