Faced with very little choice, buyers are fiercely competing to buy desirable properties across all local markets. When looking at the numbers, it’s easy to see why.
Sales volumes across Perth are up 35 percent when compared to this week last year, supply of residential homes is sitting at just 4,101, units for sale number 2,504 and there’s only 1,651 vacant lots available. These total figures are three per cent lower than four weeks ago and one per cent lower than a year ago. The stock squeeze is well and truly still on.
Average selling days remain in free-fall, down to an average of just 16 days, down from 23 days in January 2021. It was over double that two years ago at 39 days. Interest rates remain at record lows.
Queues at home opens, multiple offers and rapidly rising prices hardly describes buyer advantage, but in this rapidly rising market, acquiring property now is a buyer benefit as prices continue to rise. For sellers, quitting property now suddenly seems like a silly idea, unless, of course, you’re buying and selling in the same market.
Upgraders are particularly advantaged as uniform percentage price rises deliver higher dollar amount increases over time.
Buying ‘subject to sale’ is now complete folly as cashed up buyers knock off conditional sales as fast as they are written. Buyers worried they might be unable to settle because of needing to sell their own home, should not be overly fussed in this market; the risk is mitigated by a hot market ready to buy their home on favourable terms.
Agents have a legal responsibility to act in the best interests of the seller unless it is unlawful or unethical to do so. They are paid to ensure the buyer pays the highest possible price on the best possible terms.
One of the most effective ways to achieve this and discharge their fiduciary responsibility is to have multiple purchasers competing to buy. Skilled agents will try and create buyer competition.
Believe the agent when they tell you there are other offers in play. Buyers are prone to thinking the agent is telling fibs in a bid to encourage an offer but that’s not typically the case, especially in this market.
Buyers hoping to see a levelling out of the buoyant market conditions may soon be priced out of the suburbs they hoped to initially buy in. Don’t delay.
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