Darwon's Theory | Navigating the Market

We need to talk about the big bottleneck in the market. 2024 kicked off with much stronger interest than we saw at the tail-end of last year, and demand is far outstripping supply. It's having a domino effect, causing would-be sellers to hold on to their homes longer because there's simply no place for them to go. So, should you think about selling before you buy?

In a buyer's market, seasoned sellers can feel relatively comfortable that they'll find their next home without a gap. However, the seller is less likely to achieve a top-market price for their home - which reduces their purchasing power.

In a seller's market, like the one we have now, you have an opportunity to put yourself in a great financial position. According to the ABC, stock is 30 per cent lower than usual. Prices went up 1 per cent in January, and PRD's Chief Economist says they're likely to rise another 3 to 5 per cent in the next three months. If you're looking to capitalise on these market conditions, but don't know your next move, I have some possible solutions.

The first is to ask for a longer settlement period. These are favourable market conditions for sellers, after all. We've negotiated sales like this before, offering the seller peace of mind while they search for their next home. However, it's important to remember terms like this might reduce your buyer pool.

If you're looking to generate as much competition as possible, it's worthwhile considering your rental options. When the rental market is incredibly tight, 6 month leases are generally less popular. Long-term renters want security, but it could be a perfect option for you. Alternatively, you could sign a 12 month lease and simply give notice when you buy your next home. Generally, a tenant pays rent until the property is re-let but, in this market, that shouldn't take long. You could also consider leasing your old home back (a rare scenario, but it does happen).

For now, Brisbane still offers more value for money than the major southern capital cities. However, intense levels of interstate migration as well as the return of overseas migration is adding even more fuel to an already-hot property market. Plus, economists say Brisbane is becoming more of a 'world city', with more upmarket hotel developments and upgraded entertainment centres. We missed out on a Taylor Swift gig this year - but will that be the case in the future?

Current market conditions offer homeowners a window of opportunity we haven't experienced in Brisbane before. For those willing to take the plunge, a strategic marketing campaign could pay off more than you'd expect - putting you in a much better position to buy your next home, and perhaps even giving you a buffer to rent a holiday house for a short while.

If you're interested in discussing your options, give my team a call.

Cheers,

S.D.