If you sold a property in Melbourne in 2007, particularly in an area with strong demand from investors as well as home buyers, you probably did pretty well.
During this period, it wasn’t unusual to see half a dozen genuine buyers bidding at auction, and 80%-90% of properties selling under the hammer.
But in the residential property market, like anything else, the good times can’t last forever. The property market is cyclical; that’s what keeps it sustainable. For every period when demand outweighs supply and buyers are practically knocking your door down, there is another when buyers are less active and supply equals or outweighs demand.
For the past few years, it has been a vendors’ market. Now, we’re moving into a buyers’ market, with auction clearance rates moderating to around 60%-70%. If you’re selling a property under these conditions, you’ll need to adjust your strategy. Here’s how.
Make sure your real estate agent is actively seeking buyers, rather than waiting for them to come to you. The agent should be contacting people who have recently shown interest in properties similar to yours in the local area…….more