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Property Market update:  
Buyer demand continues to outstrip supply

While there can be no denying the economic impacts of the COVID-19 lockdown, the speed of the recovery is taking everyone by surprise.

While technically Australia is in a recession, the first for 30 years there are no signs yet that the property market is going to have a sharp decline, or even a minor correction.

It is a little early to make any bold predictions however at the moment buyer demand is outweighing the volume of new listings. This is of no great surprise given supply volumes have dropped by over 40% - 50% for some areas when comparing to the same time period last year. While there has been an increase in listing volumes in the last few weeks, they still remain very low.

What is worth noting is that during April, the number of transactions across the combined capital cities market was estimated to be just 16,115. That is the lowest monthly sales volume since 1991 excluding January results.

We have also seen significant rises in consumer confidence. Last month I reported that confidence in the Australian market collapsed in April to record its biggest monthly fall in its 47 year history. In May the ‘time to buy a dwelling’ index jumped 31.8%, reversing most of April’s drop. At 108.2, the index is back in positive territory indicating optimists again outnumber pessimists. The easing of social distancing policies and low COVID-19 case numbers in Australia mean people may be feeling more confident about the future of the Australian economy, their personal finances, and property purchases.

On the ground we are starting to receive a sharp increase in enquiry levels. However, a number of these enquiries are from people who believe that they can purchase now at a significant discount to pre COVID 19 levels. Unless we see a significant increase in listings this is unlikely to happen anytime soon and it may not pick up until the Spring market.

Currently for properties on the market the open for inspections are extremely well attended with most agencies having to keep people waiting outside so they are complying with social distancing requirements. The limited number of auctions are also being well attended. In fact we registered for an auction in Blackburn North only a month ago that had 29 registered bidders and eventually sold well over the reserve price.

So if you are in the market at the moment or considering buying a property it is more important than ever to be close to the ground to access all available options, whether they are on the market or off market and up coming listings.

It is also important to disregard general comments made by the media and focus your research on the sub market you are focused on. For example there is more upward pressure on prices for buyers in the $500k - $700k price point than the $2M + category. There is also more pressure in certain suburbs than others. There are always opportunities whatever time you are looking to buy so it is important to understand what is happening in each of the sub markets and what offers the greatest potential.

If you need any assistance with this, make sure to make a time to see us.

Property Management update


2020 is likely to be remembered as the most challenging in the Property Management industry that we have seen for some time. 

Here at Buyer's Advocate, our processes and strong team ethic have seen our team work remotely with minimal interruption through this unprecedented time. Our team all agree that there are some very positive things that have come of this unique challenge; they have come out stronger, with a wider variety of knowledge and have built on their already trusting and secure relationships with landlord’s and tenant’s alike. 

During these past months, our team have assessed and amended processes as required and as a result, they have been able to carry out their roles efficiently and effectively. Although the rental market saw a general decrease in the number of people looking for a new property during this time, private open for inspections were held which resulted in a successful leasing outcome for all available properties.  The honest and open communication with landlord’s and tenant’s has proven vital in maintaining our rental arrears to under 2% for the portfolio and only a handful of reduced rents.

It has been an absolute pleasure simply talking with our landlord’s, tenants and trades people.  The trust and empathy shown during this time from our existing clients has been a very positive experience.  During times like this, we get to understand what it is that we, Property Manager’s do as a role, we see what value we add to all of our clients and we all get to unite and work together.  What an experience Covid-19 has been for the Property Management team here at Buyer's Advocate.

We pride ourselves on creating an unsurpassed Property Management experience for all clients. If Covid-19 has left you questioning what it is that your Property Manager does, please feel free to contact Rachel or Lily in our office on (03) 9818 4499 for a confidential chat. We welcome your enquiry.

Our Vendor Advocacy Services


Did you know we offer Vendor Advocacy?

A service within our broad range of offerings is Vendor Advocacy.  We can assist clients in taking the time, stress and pressure out of selling a home or investment property, delivering focused experience and expertise in all aspects of a property sales transaction.

We are able to provide an independent valuation of your property. Our Advocates are experienced advisers who will guide you objectively through the sales process.

Our role as a Vendor Advocate is to act for the seller, to appoint a suitably qualified real estate agent. This ensures at all times that selling agents do what they say they will do, charge a fair and reasonable fee for their services, act impartially when introducing buyers and market and promote your property professionally and effectively.

Our fee is deducted from the sales commission, so it won’t cost you anymore to engage our service to assist you to sell your property.

Let us help you sell your property. Contact one of our experienced Buyer’s Advocates on (03) 9818 4499, for an obligation free discussion.

 

Recent client purchases

Home Buyer in Eltham 
$691,000

Buyer’s Advocate – Sam Lally
 
In 2011, we purchased a two bedroom apartment on Burke Road Kew for our client. 9 years later, it was time for her to move on. In the middle of Covid19, we advised our client that it was probably not the best time to proceed with the sale of her home, however her objective was more important than the timing and we proceeded to make things happen.

We selected the best marketing agent that was the right fit for her and the home sold for $10,000 more than her expectations. From here it was onto the case of finding her a new home. After gaining some further clarity of her needs and requirements, we secured an awesome 2 bedroom, 2 bathroom, 2 car town house in a boutique block of four, within a matter of two weeks after the sale of her property. Wrapping up two deals for one client in this climate, in the timely manner it was undertaken, left our client speechless but over the moon nonetheless. 

 
Home Buyer in Hawthorn
$721,750
(off market purchase)

Buyer’s Advocate – Sam Lally

 
On the 25th May 2020, our clients came to us after 18 months of going it alone. Their main frustrations were that when they found a home they liked, they were always missing out, and the time an energy it took out of their day to actually go and inspect a property.  On the 2nd June 2020 they became proud new home owners. Another short time frame in the market (7 days), once the job of searching was outsourced.
 

Tip of the month:

Understand vendor motivatations

Tip of the month - Understand the vendor motivations
 
It is very important to ensure whenever you are looking at a property purchase that you understand the reasons why the vendor is selling. This will help to determine three things;
  • How much to offer
  • How hard to push
  • What terms to include 
Knowing the vendor motivations can give you a real advantage when it comes to determining the best purchase strategy for a property. If someone is highly motivated to sell, they are more likely to consider an offer early in the campaign. Or may be more motivated on the day of an auction to accept a lower price. Often there are also motivations beyond price that can assist you to get a better outcome. For example, if you know that the vendor has already bought, you can coordinate the settlement date with theirs.
You may not always get an immediate response when asking the agent what the motivations for sale are so don’t be afraid to ask some more specific questions to draw this information out. Such as;
  • Has the vendor bought?
  • Do they have a specific settlement date in mind?
  • Are they selling for a specific reason?
  • What would be the idea outcome for the vendor?
  • Why are they considering selling that this time?
Be tuned into the response as this may lead to other questions that further your knowledge and position when it comes to negotiations. For example, if you ask the question if the vendor has a specific settlement date in mind and the answer is yes, the logical follow up question would be what is motivating that date. Sometimes you have to push to obtain the information you are after.
There may also be some physical items that you can look out for. For example, if there is nothing in the cupboards, they have moved out indicating they have bought or if they are an investor they are not receiving rent, so the motivations would be higher.
 
So spend the time to understand why the vendor is selling and whether there is something that can provide you with a distinct advantage at the negotiating table.
Copyright © 2020 Buyer's Advocate Australia, All rights reserved.

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Buyer's Advocate Australia
88-90 Burwood Road
Hawthorn, Vic 3122
Australia

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