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Property slowdown opens the door for strategic buyers and sellers
As the national downturn continues, John McGrath has urged buyers and sellers to act before the correction period ends, with investors set to reap long-term benefits.
Despite the property market slowing amid falling clearance rates and reduced sentiment, buyers and sellers can still reap the benefits of numerous opportunities.
McGrath Estate Agents CEO, John McGrath, encouraged vendors and purchasers to not be discouraged by recent headlines showing prices falling, noting there were positive signs.
“At some point in the cycle, property inevitably rises and falls, so don’t be surprised or scared by these market dips,” he said.
He said that despite falling clearance rates, the auction process was still performing well and delivering good results.
According to his network’s data, the recent average time on market for auctions has changed little compared to the same time last year, at 31 and 30 days, respectively.
“This is as a result of many of our auctions actually selling within the first two weeks of the campaign.”
“Whereas our private treaty sales have blown out from around 42 this time last year to now 55 this year.”
Despite overall sales outcomes looking very different to previous years, McGrath said the conditions varied across jurisdictions.
He said the mid-size capital cities, Brisbane, Perth and Adelaide, remained at their peak after five years of high price growth.
To get the best possible result, McGrath said sellers should ensure they price their property to reflect the current real estate outlook, rather than that from a few months ago.
“You might see fewer people through open homes or at auctions, but buyers who are active at this time of year are usually genuine, committed purchasers ready to make decisions and negotiate with confidence.”
“This means first impressions and smart advertising are more important than ever.”
Meanwhile, McGrath noted many buyers, particularly investors, were sitting on the sidelines, hesitant about the changing market and the recent tax policy reforms.
“If you’re thinking about buying, the current market offers an ideal opportunity to get ahead of more nervous purchasers, and to possibly secure a purchase at a more favourable price.”
McGrath said another incentive for buyers to act now was the idea that spring was just around the corner, traditionally the busiest time of the real estate year.
Ultimately, he said the current correction period was forecast to last six to nine months before stabilising early next year, and that it was already three to four months into the new period.
“Finally, while we may see another national cash rate increase this year, Westpac is the only Big Four lender to predict an uptick in 2026.”
Regardless of the current state of the market, McGrath said both buyers and sellers should remember that there was no such thing as a perfect time to purchase or market a property.
“There is also no ideal time to pick the bottom of a property cycle. What’s important, and what won’t change, is that property will always be a great asset.”
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