A Good Time to Buy Good Property

After threats of a market crash, property prices have recommenced their upward trend once again. There's still pockets of opportunity, though if you're waiting for a better time to buy, you had better get busy now.

Basic numbers

We're currently experiencing a supply crunch resulting in a lower number of properties available to purchase. This has caused auction clearance rates to hover around the 60% mark, and the number of days on market has started to level out as sellers become more realistic about pricing.

Many buyers are keenly waiting on more interest rate increases to see prices soften, but as the borders open and migration ramps back up again, we're expecting to see population increase by more than 500,000 over the next few years.

This will lead to more competition for properties available for sale causing prices to at worst hold ground, or really ramp up again.

Opportunity

The current market presents a window of opportunity for buyers who are in the financial position to make a move. Experienced buyers know that softer or sluggish markets are when the most amount of money can be made, though it's critical to avoid being caught up in the numbers.

Many buyers become fixated on achieving the absolute cheapest purchase price. Not only will this lead to missing out on some great purchases, but it leads buyers to fall victim to the 'lemon' purchase. This is because during slower markets, there's a higher proportion of properties that have 'unfixable' issues or features that some buyers won't be able to handle.

Great time for great property

The best approach in the current market is to take action on great property. It might be a property where the price has dropped minimally or not at all, and might be above the suburb median, but will mean you're actually getting a bargain compared to what you might have had to pay in the peak.

It's these types of properties that will leap in price as soon as the market changes again (and we all know how quickly that can happen).

How to select great property

The most important approach is to look for property that matches your needs and targets. For example, don't purchase a massive renovation project if you've never renovated before.

Next, look for properties that have 'opportunity' embedded within them. If you're attracted to property that has been recently updated, expect to pay at the upper end of the price band no matter what the market is doing.

Alternatively, you'll have the most long term success if you aim to purchase property that has plenty of uplift still to be realised. If you're ready for more details and want to know how to identify property that will continue to deliver no matter what the market is doing, check out our new guidebook – How to select property that will perform in any market.