If you have missed out on yet another purchase recently, you might almost be feeling like things are conspiring – to keep you out of the market. Many potential buyers seem to be expressing this concern to us. As prices remain surprisingly firm, driven by demand, a pandemic driven lifestyle surge, easy credit and low rates…it’s possible to lose the will to keep on chasing, what might look like an ever impossible dream!
If it’s any consolation, you are not alone!
This phenomenon – almost identical in its drivers, is happening globally. Asset prices are rising, close to home in NZ, and further afield in the UK, US, Canada and Northern Europe, there have been rapid price rises across the housing market in the past 18 months.
A lot of this can be attributed to the low interest rates in these markets also, and again, demand outstripping supply, as people look to create a base during a time of uncertainty.
Will it continue?
Well, there seems to be momentum both AFTER lockdowns end, and DURING them, if our experience here can be relied upon as a marker.
And locally? We’ve seen strength through the first big lockdown, resurgence afterwards – and continuation in this lockdown. You’d have to ask if there’s much left in the tank…?
For buyers, the main hope is that supply increases, which might relieve the pressure.
On that front there are signs of improving levels of ‘stock’, though the reality is that, for many potential sellers, looking to trade up or down but stay local, are put off by the concern at being locked out of the market.
From our own experience, the majority of sales in recent months, have been vendors that are either;
• moving out of area,• Selling long held investment or otherwise surplus properties, or• Downsizing
News that newhome building numbers are expected to fall won’t help the overall supply. But again, new builds aren’t so much a thing locally…
One possibility for future guidance is to look at other markets where lockdowns are down and vaccinations up. In the UK, like here, there was a frenzy…that’s now starting to cool off.
Apartments are still a good bet around here. If you see one locally – all units in this area are well positioned – often close to the beach, Pittwater and village shops, then my advice is to grab it! Check out 14/5 Avalon Parade (up on the headland)…scroll down!
Likewise, any houses that are ’fixer uppers’…my advice is – go for it! Unfortunately, after 18 months of various degrees of lockdown, everyone has repaired, updated, repainted, tweaked and finessed everything in sight! What that tends to mean is that most places are now ‘done’ which probably means you’re not going to have to spend as much as you might have in the past, on upgrades.
Either way…here are a few ideas!