On the 18th May 2019, Melbourne property was in the doldrums. Whilst the rapid slide had started to slow, everybody expected at least one more significant dip. A recovery was at least 12 months off by broad consensus. Then we had the (“miracle”) Federal election. Quickly followed by a significant loosening of lending policies and then interest rates started dropping.
The turnaround was dramatic, given the lumbering ship type nature of property. Generally, we tend to view tomorrow through today’s lens and expect that by and large things will be pretty much the same as they are now. Observing history allows us to benefit though, providing we act on it.
Right now, another change may be coming. Maybe in a matter of weeks. You see, property is like most markets and works in cycles. Largely driven by supply and demand. Right now, demand is back for property; in a fairly big way. And supply is a long way below average. The result? Prices are spiking. By quite a lot sometimes.
But in just two weeks’ time, Spring will arrive. And what happens in Spring? All the sellers waiting to present their homes until they look at their best (sunshine and blooming gardens etc) push the button. Within a short period of time, the number of available properties jumps. And the supply/demand imbalance? No longer so out of whack. Of course, there is often an increase in the number of buyers as well, so nothing is certain. But sellers waiting for the best time of year to sell might well find themselves having missed the period of under-supply. And the extra dollars that comes with it.
Likewise, buyers can well afford to wait a few weeks. Unless your ideal home has already hit the market, you will likely have a lot more choice shortly. Be patient.