Real estate prices could be at a turning point according to forecasts from leading industry researcher, Core Logic.
With data showing that average values were down just 0.6% in April, negative market sentiment could be coming to an end.
CoreLogic economist Kelvin Davidson issued an important reminder about prices, saying property values were still $200,000 higher than in March 2020 when the Covid-19 pandemic took hold.
He also predicted an end to the slump. “The slowdown could be signalling a near-term floor for house prices,” he said.
Average values have dipped 10.2% in the last 12 months.
As a respected agency in your area, we’re seeing changes in market sentiment and CoreLogic’s analysis aligns with our experience that buyers and sellers are increasingly finding common ground on price.
Even though interest rate increases have put pressure on some owners, most are not at the point where their financial situation is forcing a sale.
However, there has been an emerging trend where sellers try to lure buyers with incentives. A house in Coromandel went on the market recently, offering a free Rolls-Royce for the buyer.
Last year, a developer offered a Tesla to the buyer of a new five-bedroom home. And just a few months ago, a $2.5m house went on the market with a 2005 Bentley GT as a value-add.
However, these incentives should not distract buyers as the value of most property deals makes such offers little more than a side issue.
We’ve made a short list of considerations if you’re preparing to buy property in the current market. We hope you find them helpful.
In the meantime, please do not hesitate to contact us for your real estate needs.
Think long-term
Don’t be lured into a cheap deal without considering whether the property represents a long-term investment opportunity.
Avoid remorse
You may think you’ve got a great deal, but never buy a property that doesn’t suit your needs. There’s nothing worse in real estate than buyer’s remorse, even when you’ve snared a property on the cheap.
Consider location
There’s much more to a property than its price. Consider proximity to schools, shops, cafes, and restaurants. The location of the property is a significant factor in determining its value. If you find a great area, it will likely appreciate significantly when the market rebounds.
Strike a deal
Our current market offers some fantastic buying opportunities. However, there’s often more than one buyer circling the best properties, so don’t assume a low bid will get the job done. Your offer should reflect fair market value, but it’s wise to leave a little in reserve for the negotiation.
Resist ‘timing the market’
Waiting for prices to fall to their lowest point can be folly. If you find a house or apartment that you love, then make your move. Those who sit on the sidelines lose out on great opportunities and often pay more when prices rise.