2016 here we go!

Insights

Here we are, third week of the new-year, and the property market machine is starting to wake up like a bit of a sleeping giant. It was a mad rush to find and buy something for a lot of people late last year, and there was a lot of heat in the market. Those that missed out and those that held off are now looking to 2016 with more questions than answers.

Here’s a few that will make the rounds on the news and social media:

Will the correction that has to happen actually happen this year?
Will the bubble burst? Because property cycles have been too strong for too long
Will interest rates rise? They rose in America didn’t they?
Will overseas buyers drive prices up AGAIN?
Will the clearance rates drop like late last year and will this make buying easier for me?

The fact is NO-ONE knows the answer to any of these for sure. Regardless of what they tell you. History is only ever an indicator for action and reaction, life never guarantees a repeat performance.

If I was watching things for an indication, and I am, I would look at the following:

What’s going on with stocks, shares and export markets? If investors are getting a bath in the share market, a lot of times they look to bricks and mortar for a little more consistency.
What’s going on with employment? The more people working, the more money in the community. Big job losses generally mean less people with financial means to buy.
How many properties are up for sale this week vs how many are selling? Clearance rates of 67% when there are 1500 auctions mean more actual sales than clearance rates of 90% when there are 700 Auctions. If you are going to look at the numbers, look at ALL of them.

And if you are looking for an edge when it comes to securing a great property this year, try focusing less on the strategy of volume accumulation through value addition and re leveraging, beating market growth forecasts and prevailing market trends….and try instead to focus on the art of the deal. Try making every deal a GREAT one, instead of doing 5 “ok” ones. Invest some time learning how to negotiate. It will save you thousands, and that’s thousands less you have to find in the first place. Remember…you make money when you buy. Have a prosperous 2016 people. I look forward to catching up with you all out there.