There is no doubt that as we experience our ongoing and seemingly relentless interest rate rises that we are now entering a changing real estate market. The urgency and frantic buying behaviour that we saw during the pandemic has calmed and we are faced with a different buying process and a range of contrasting buyer profiles. Property prices on the Sunshine Coast are holding well, as demand is still relatively high however the actual listing and selling experience is different for sellers, agents and buyers alike. Gone are the days where properties were listed and under contract 24 hours later and there is certainly less cash floating around the marketplace. But what does this changing market mean for buyers and sellers?
Buyers are suddenly up against less frantic competition. By all means, there is still plenty of demand for property across the Sunshine Coast, however the inflated urgency and trend of interstate buyers, offering sight unseen and throwing crazy cash around has slowed substantially. This gives buyers that have missed out over the past 18 months a chance to really compete for their preferred properties and actually take their time to inspect and assess the property prior to making an offer.
Our top tip for buyers in this market is to have your finance pre-approval ready. There is still plenty of buyer competition so knowing your borrowing capacity and your limit is important in being successful with your offer. It is also important to do the math and factor in what impact an interest rate rise will have on your borrowing power, should this occur during your conditional contract period. There is nothing more disheartening than having your offer on your dream home accepted only to have finance declined after an interest rate rise changes your feasibility. It is imperative to know your limits.
Secondly, go house hunting with a strict criteria that separates needs and wants. It is one thing to have a dream, but it is highly unlikely that a property is going to tick all the boxes, so it is key to know what you absolutely need and what is something that would be nice to have. You can always add or change things down the track, but you can never change the location or the size of the home, so having a clear guide around what you actually need to accommodate your lifestyle is a great way to approach shortlisting your property search.
When it comes to sellers in this changing market, it is helpful to understand that the shift in market will impact how your campaign unravels. Seller expectations should also shift to meet the market, bearing in mind that it is no longer just a matter of taking nice photos and posting it online. With the buyer urgency lowering and the consumer confidence lacking, the selling process is taking longer, and buyers are being more discerning. Agents are holding more open homes and private inspections and having to be more detailed in information provided to prospective purchasers.
Our top tips for sellers would be to strongly consider any pre-market advice from agents in terms of how to present the property to the market. First impressions certainly last and they do have an impact on the result. Sellers will also benefit from taking on board the feedback from the marketplace that will be filtered through their agent. It is also important to select an agent that has a proven track record in the area and is able to demonstrate success in this current market where it is less about taking orders and more about perfect strategy execution. It will be these agents that will be skilled negotiators capable of achieving a premium price in a cooling market.
First National Lifestyle Sippy Downs is an experience and successful team of real estate sales and property management professionals, equipped to guide and support you through your buying and selling journey. If you need help making your next real estate decision, call in the experts and be confident in making the right choice in the current market.