It might not last for very long but buyers still have the upper hand in the real estate market. In the last three months of available data, the number of homes in Australia that were advertised for sale was still higher than the number of home loans approved from September through November, 2012. These numbers were released as part of the newest Commonwealth Bank/RP Data Home Buyers Index.
According to Cameron Kusher, senior research analyst for RP data, there are still a lot more houses for sale than there are buyers. This represents an opportunity for buyers to negotiate with sellers and find bargains. According to Kusher, the current market gives buyers the upper hand when negotiating prices.
Due to fallout from the Global Financial Crisis, many buyers are reluctant to accumulate more debt because most people have been working hard to reduce their debt for the last few years. Many were able to save for a larger down payment but are not in any hurry to upsize or purchase a more expensive home because they would prefer a more comfortable financial position.
On the other side, sellers are reluctant to lower prices, especially if they bought their houses while prices were higher because they don’t want to take a loss on their investments. Consequently, many sellers are leaving their houses listed for sale until they are able to get the price they want for their house. Many online real estate portals don’t charge the seller a monthly fee so it is to their advantage to leave the home listed as long as they are comfortable in doing so.
According to Sean Green, operations manager for Raine & Horne, he has seen plenty of what he calls excellent buying opportunities in the Perth, Brisbane, and Sydney markets, especially those properties available for between $450,000 and $500,000. Green encourages prospective buyers to move now because it has been his experience that buyer’s markets do not historically last for very long.
Green recommends getting your home loan approved now so that you can move quickly if you find a home for the price you want to pay.
Call us today at (08) 9527 1800 to begin taking advantage of this opportunity.