Flat Market Favours Buyers
You've probably heard the reports about the Australian property market being 'flat'. What does it mean to have a flat market and what are the implications for you as a buyer or seller?
'Flat' is a stage in the housing market where little or no growth occurs and there is slightly more supply than demand. Buyers tend to be cautious and sellers tend to hold on to unrealistic price expectations.
The biggest message for buyers in a flat market is not to be scared away, because market conditions actually favour the buyer. It's a great time for negotiating a deal because there are fewer buyers, more properties and less competition. While some sellers are unwilling to accept their home's value has dropped, others are prepared to make a deal to get a sale.
It's also a good time to buy an investment property because rents are driven up as people hold off buying and continue renting.
For sellers, the message is to keep your price expectations realistic and focus on how best to present your home. You need to ensure your home competes well in the marketplace and stands out against other similar homes for sale in your area.
You are in the winning seat if you can manage to buy and sell at the same time. A flat market can be the best time to trade up because you may be able to afford a home that was previously just out of your reach.