Another perennial question we get from buyers: “Is there more stock coming after… the election / winter / summer / Easter / (insert calendar event here).”
The answer is usually, ‘no’.
We live in a market of scarcity at the best of times. If you remove the new apartment market, Stonnington consists of a finite number of detached and semi-detached homes that are generally in strong demand.
There are less than 14,000 detached houses in Stonnington, which will only decrease over time as larger period homes continue to get demolished to make way for new developments.
As a buyer there is never enough choice.
While it might not seem like it, volume is actually quite high right now. Higher than the five-year average.
There is a reasonable amount of choice for buyers currently.
But when you’re an active buyer, refreshing the REA or Domain App several times a day, with a narrow filter for property type, suburbs, number of bedrooms and price, you can’t help but feel disappointed with the limited amount of choice.
Of the new listings you see each week, some of the properties won’t be appealing due to price (perceived value), location, floor plan, street appeal, condition, etc.
And the ones that are appealing to you are more than likely appealing to many other buyers as well.
Buyers tend to like the same things – perceived value, location, good floor plan, street appeal, great condition, etc.
So those homes that tick all the boxes, especially on perceived value, will still be highly competitive and you have a fair chance of missing out.
It’s not unusual for us to see the same buyers looking for many years. The more cautious, value conscious and fussy you are, the longer you will be looking.
If supply is tight even in a strong market, what happens when the market is perceived to be slowing?
Supply falls further.
If prices plateau or even fall slightly, and if clearance rates drop, some discretionary vendors simply won’t sell.
They will sit tight and wait and see how the coming months unfold, whether rightly or wrongly.
Quality properties will become even scarcer, and the remaining buyer pool will continue to get excited about that needle in the haystack opportunity.
Therefore, if you have a quality property to sell, or you handle the sale of quality properties like we do at Team Fetter/Sciola, you needn’t worry.
The lack of choice will only work in your favour.
As a buyer, don’t fall into the trap of wishing and waiting for a future of higher stock levels that may never eventuate. You likely have more choice right now than you will have in the coming months. So take advantage now.
This Sunday our very own Carla Fetter is set to take the real estate industry’s biggest stage, speaking in front of thousands at AREC on the Gold Coast, alongside keynote speakers Matthew McConaughey and Seth Godin. It’s a big deal. We know she will do us proud as one of the leading voices in our industry.
We wish her all the best!
Feature Property: 89 Claremont Avenue, Malvern