Most people describe a property market as either a buyer’s market (prices going down) or a seller’s market (prices rising). Simply put, one is deemed bad for buyers and one deemed good for sellers and vice versa.
The current market should be termed a trader’s market. Falling markets come with silver linings & create opportunities for savvy traders. Instead, real estate agents tend to refer to a falling market as a ‘tough market’. Sellers call it a ‘bad market’. The market is normal, neither ‘tough’ nor ‘bad’ if one accepts the reality of the day and then decides the best way to trade the conditions.
Unfortunately, sellers who take a position of pride on price with their existing dwelling can miss the opportunities that arise elsewhere in the market.
Even though prices are falling, a savvy trader can make smart and profitable moves in a bear market. When property prices fall, transaction volumes tend to fall at an even faster rate. This is because vendors increasingly take a position on price for their existing asset and refuse to sell. As a vendor, it is easy to feel as though your property is the only one on the market struggling to sell when in fact the market at large is dealing with the same issue.
Unfortunately, sellers who take a position of pride on price with their existing dwelling can miss the opportunities that arise elsewhere in the market. Opportunities that more than offset the shortfall you may experience on the sale. The Melbourne market conditions could be flat and/or falling for some time. Those wanting and needing to buy and/or sell cannot afford to take a stubborn view of the current market conditions if they want to trade successfully. Australian real estate has been generous over the long term, but the short term is prone to price corrections as we are now learning.