Auctioneers have slots booked right up until Christmas
- Written by Tim McKibbin, CEO of the Real Estate Institute of NSW (REINSW)
Seller and buyer expectations will be tested this week. It means agents will be tested too.
Agent reports suggest the middle ground between buyers and vendors has been harder to find in recent times. The last few weeks have delivered a shift, and vendors should be mindful that while price growth has peaked, they’ve most likely already enjoyed the benefits of the boom in the form of capital growth.
Buyers, empowered by more choice and cooling prices, are showing a greater willingness to walk away from potential purchases if they don’t recognise value for money.
Unrealistic price expectations will work against vendors. It’s critical for vendors to listen to their agent, who best understand a buyer’s motivation and expectation of value.
After all, buyer appetites remain strong. The festive season wind down has not happened this year, at least not yet, and auctioneers have slots booked right up until Christmas.
It may be a new market, prices may be re-setting, but activity remains intense.
Around four in 10 properties scheduled for auction are selling prior. Clearance rates have dropped from the 80 percent mark to the low-to-mid 70s and we expect a similar result this week.
With more deals being done during the week, there’s less focus on Saturday. Agents are best placed to provide vendors a temperature check leading up to auction day and if a good offer is received prior, agents will recommend vendors take it.
A month or two ago, some auctions had up to 15 registered bidders. Now, a more likely scenario is that two to three bidders will compete.
Agents may have to work harder to get their vendors a good offer and in the new market, a good offer is what vendors should expect.