The Brisbane Market Right now and how a Buyer’s Agent can help you navigate through it to succeed.
Buying a property is typically one of the biggest transactions you will ever make. Whether as an investor or owner occupier searching for the property that suits your needs is undoubtedly one of the most stressful processes you could undertake. Well, that was then, Pre-Pandemic and for a few Buyers Agents who have been around for a property cycle or two- this property market in Brisbane right now is the most “challenging” that we have ever operated in but that’s only from our perspective, not from the seller’s perspective. So why is this the most “challenging” market that I have operated in? To understand this, we first need to understand where the Brisbane property market is and what is symptomatic of the market right now. If we consider auction clearance rates as the “Barometer” for both the activity levels and health of the property market then Brisbane is currently at dizzy heights, with clearance rates consistently recorded in the high percentile, an event in previous times very rarely seen given that historically we are not an auction driven market.
Let`s look at the monthly auction clearance rates between Feb 19 – Jan 20 all resulting in an Annualised Average @ 42%
and the monthly auction clearance rates between Feb 20 – Jan 21 all resulting in an Annualised Average @ 60.4%
This data shows that from Aug-2019 to Jan `21 Brisbane auctions have continued on its resurgence path with an increase of almost 20% across the periods, showing that the market has resumed last years trend of a strong sellers market.
Even though we are in a strong sellers market the volume of stock available is much below normal market level and this factor, combined with a strong volume of buyers looking to enter the market, has resulted in a level of buyer frenzy not seen for some years. Most properties launched onto the market for sale now are having unprecedented numbers thru the Open Houses and in most instances, resulting in multi offers being presented to the sellers. These buyers are now realising that to secure these properties they need to be strong in their contract conditions, and fast in their decision making. These two factors are driving the growth in the market, resulting in rapid sales results and rising values.
However, only one buyer can purchase the property therefore leaving a mass of ready and willing buyers continuing the search for the next property to consider, typically stressed and usually disheartened. This cycle is then repeated across a few more properties until the battle-weary buyer dismisses all their previous attempts at rationalising an opinion on value and throws hell for leather at the next property they like and submit an offer price that, in a lot of recent cases, defies logic. This is also the world of the buyer’s agent right. Understanding that a buyer’s agent should always give their client professional, appropriate & representative advice and opinions of any property and its local market position but in some cases even years of experience and market knowledge cannot legislate for the emotional value that the weary buyers, who are tired of suffering on Saturdays, will submit on their final attempt at property buying.
Most home buyer`s journey will include spending hours trawling through online property databases, stressing out to find the time to arrange and attend inspections, panicking and periods of anxiety at facing the intensity of bidding at an auction and possibly an uncertain feeling that they may not have the appropriate finance for the purchase in place. So, to continuously keep missing out on the property`s that they desire will certainly add an unhealthy level of stress to their lives. A buyer’s advocate or buyer’s agent will provide solutions to all of these problems allowing you to continue on with your life outside of the property buying sphere. A buyer’s agent is to a buyer – what a selling agent is to a vendor. As a selling agent will represent the needs of a vendor a buyer’s agent will fully represent the needs of the buyer. Buyers agents will be able to connect with their network of selling agents to uncover listings not yet available to the public. Pre-market property may be available to some buyers, but most would be highly unlikely to come across property, if it is not listed on the public portals. An experienced Buyer’s agent will also know how to find previously listed properties for sale or target specific properties that match a criterion and if the vendor is interested in selling you have the opportunity to avoid the processes or the intricacies of the open sales market. Last month alone we secured 3 properties pre-market and 1 within the first day on market and a day before the vendors agent presented a back up contract at a significantly higher price than we had negotiated for our client.
Peace & quiet, Happiness, Stress- free, weekends back, dream property secured, money in bank. This is what using National Property Buyers QLD for your property buying needs can deliver to you.