A changing market necessitates a change in strategy from agents
- Written by Tim McKibbin, CEO, Real Estate Institute of NSW
This week the market should continue to settle. The pace of price growth is easing and agents will need to draw on their negotiation skills so they can continue to deliver the types of results vendors have come to expect.
Recent CoreLogic figures show listings nationally have increased 47% since September to bring a welcome increase in choice for buyers.
Meanwhile APRA figures, also for September, show a 0.7 percent increase in owner occupied lending and a 0.3 per cent in investment housing lending for the month. But there’s a subtle shift occurring.
More recently, agents are reporting that a lower number of people are choosing to begin their buying journey.
Underlying demand remain intense and those who have secured finance and completed their due diligence are still actively looking to buy, but the number of people making these initial inroads is waning slightly.
It’s a subtle and not unexpected change which actually points to the resilience of the residential market, as it allays concerns of a sharp correction.
Nevertheless, there’s potential for the recent growth in housing lending to flatten as the market cools.
A changing market necessitates a change in strategy from agents.
The value an agent provides is always clear, though it could be argued the selling strategy when the market is hot is more straightforward, when new listings are snapped up quickly.
As this subtle change in the market plays out, vendors and agents will need to consider each campaign on its merits, both in setting price expectations, and through the offer and acceptance process.
It’s crucial for vendors to listen to their agents in the changing climate.
