Buying and selling in a cooling market - John McGrath

Weekends have always been a busy time for real estate agents, with auctions as well as open homes for prospective buyers and tenants.

At the same time, we have been experiencing not only a traditionally quieter Winter season but also a market correction and auction clearance rate declines, which have impacted consumer sentiment.

But there’s a reason why I always encourage buyers and home owners not to be discouraged by market corrections, and I’ll repeat it again now: at some point in the cycle, property inevitably rises and falls, so don’t be surprised or scared by these market dips.

As I look at our company's average days on market, which is one of our key indicators for performance last year at this time, it was 30 days on market for auctions and this year it's 31. So, virtually little difference and that is quite encouraging.

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.

So overall, the auction picture isn't all bad, with this process still performing well and delivering good results.

Property sales results as a whole at present are a little different to what we’ve experienced in the last few years, and as usual in real estate, sales data and statistics can change dramatically depending on where you live.

A good example of this is our mid-size capital cities – Brisbane, Perth and Adelaide – which remain at their peak after five years of exceptionally high price growth.

For now, sellers should make sure they’re pricing their property to fit the current real estate outlook, and not the one of even 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.

At the same time, and as I told respected business commentator, Peter Switzer, earlier this month, a lot of people especially investors, are sitting on the sidelines at the moment wondering what the adjusting market – and especially the recent Federal Budget investment policies – will mean for their property future.

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.

Another incentive for buyers is that Spring is just around the corner and is traditionally the busiest time of the real estate year.

As I mentioned to Peter Switzer, first-home buyers stand to be the main winners of the Federal Budget changes. In addition, while I think the current correction period will be with us for six to nine months, or even a year, we’re already three or four months into this new period, and it should stabilise early next year.

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.

Both buyers and sellers should remember that regardless of the current state of play, there is 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.