Brisbane Property Market Insights gives you valuable information in regards to the Brisbane Property Market from Brisbane Buyers Agent Alistair Kelsall. Find out what is actually happening now in the Brisbane Property Market rather than waiting for historical reports. Take advantage of the Brisbane Property market with valuable information not available anywhere else.
Brisbane Property Market Insights April 2022
The Brisbane Property market is changing right now, as highlighted in last months Brisbane Property Market Insights the market was moving from a sellers market to a buyers market. The result of such a dramatic change in the market is that properties are not selling as fast as they did 2 months ago and they are not achieving the same high sale prices as market demand wains.
What I am Experiencing on the Ground
My role as a Brisbane Buyers Agent means I inspect a lot of homes for sale. The majority of my inspections are private and off market as I do not want to compete with the high number of other potential buyers turning up at a public open home. But attending open homes gives you a very good indication of the current property market. Two months ago if there was a good property for sale you could expect around 40 people at the open home. In the last week I have attended 7 open homes with the average attendance being 5. That is a very significant drop in the amount of potential buyers which results in a reduction of pressure in the local property market which leads to price reductions. If you’re a smart investor, now is the time to buy as you can negotiate a good reasonable price on a property now.
Brisbane Property Market Insights In Action
For the first time in at east 18 months, I have been able to successfully negotiate a price $20K below the asking price. Where previously, an agent would send me an Off Market property with the asking price of offers over X amount off dollars and it was my job to secure these properties for the best price I could. Now, instead of simply accepting the Offer Over price range, I am submitting offers which are fair and reflect the current Market conditions and I am winning the property.
As a real life example I was offered a 3 bedroom home in Doolandella Off Market with the price request of “Offers Over $649,000”. I put together a negotiation strategy with the buyer, the property valued at $654,000 but we agreed on the target price of $630,000. Our First offer was at $620,000, the seller responded with $630,000 and we accepted. Now I cannot claim to have created an instant amount of equity for my client, the value of the property is what someone’s prepared to pay for it, but what we know is that this property has a high potential for short term capita growth once the market returns to normal conditions.
What is Going On
One of my “Top Ten Tips For Property Investing in Brisbane” is “Don’t Listen to the Media”. Why, because everyone else is and they are reacting to what they are being told.
This could be as simple as the media announcing a particular suburb is a very good suburb to invest in which then creates a higher level of demand on the local property market and prices increase. When this happens I target the suburbs close by that are not performing so well at that time which means lower demand on the local property stock and lower prices for the equivalant property. But when the recommended suburb peaks and the amount of available houses starts to decline, those still looking for property start to look in the suburb I was buying in which then places a higher level of demand on the Alcoa stock and the properties I purchased experience a rapid price increase.
The purpose of the Brisbane Property Market Insights is to clarify what is going on that is effecting the Brisbane Property Market and give you a different point of view than the one you currently have. We have events taking place right now that the media is jumping on and creating unease in the Brisbane Property Market. Firstly the elections, no matter what when ever we have an election coming up the market slows down, people simply stop buying during an election phase. Then there is the threat of interest rate rises, again another major point the media is using to promote itself and gain an audience. If your purchasing an investment property then fix your loan, this is excellent for budgeting, if you fix your loan, you know exactly how much your loan repayments will be for a given period of time, you also know the fixed rental amount coming in to you. With a variable loan, if interest rates change, your loan repayment change in accordance with the new rate, but the rental amount does not so fixing an investment loan is good practise.
When we think of interest rate rises, all we focus on are the increases in our daily expenses without taking into account the higher tax savings we receive when we are paying higher loan repayments. Most people don’t think this way, we have been conditioned to live in a state of fear which is great for the media as they increase the amount of listeners. But if we move away from the standard way everyone else thinks and can see the opportunities the Brisbane Property market is currently offering, you standard a very good chance of securing a property at a good fair price.
Brisbane Property Market Insights Current Market
When purchasing property in this current market phase we are in requires a different purchase strategy. We do not need to rush, in fact the opposite, we tend to turn our backs on a property, even if we desperately want it in order to create a level of insecurity within the owner and agent. The purpose of this method is to change the mindset of both sellers and agents to this new marketplace we are in which will therefore reverse their expectations of the price they are willing to accept. By this I mean that instead of a seller expecting to receive high numbers of potential buyers at an open home and receiving multiple offers of higher amounts than the anticipated sale price. These sellers need to know the market has changed and to lower the expectations in regards to the potential sale price their property could achieve.
As a real life example and this property is one of many I know of right now. The home below is in a very good location and it is a very nice property but it first came on to market 2 months ago with the owner wanting a very high price for the property. I know they received a good strong offer in the high $700K range but they were adamant of the price they wanted. It’s still sitting there on the market and it will continue to sit there till the seller adjust his exceptions to be inline with the current market conditions.
Disparity
There is always a disparity between the seller and buyer when we enter into a new market phase. An agent may have been in discussions with a potential seller for a number of months and the potential value and the number of prospective buyers the agent anticipated to be interested in the property has changed since then. It’s no fault of the agent but he or she now has to educate the owner of the property to adjust their expectations to meet the current market conditions.
Brisbane Property Market Insights Suggested Actions
If you are considering investing in the Brisbane Property Market then now is the time to secure a very good property at a good price. We are not going to see bargains come on to the market, the Brisbane Property market is far too stable for that and we are still experiencing high numbers of families relocating from interstate. Keep in mind a property owner buying in Brisbane thanks our homes are very cheap. Where as the locals, think our property prices are now very expensive. It’s all a mater of perspective and with the right Insights into the Brisbane Property market, now and for the next month or so is a very good time to invest in the property market.