Buying in a seller’s market

A COMMON trend Ray White Woodside principal Angus Campbell has encountered lately is that vendors are scared to sell because they feel there is nothing to buy.

Just like the rest of the country, South Australia has seen a huge increase in property prices and open home inspections are full of people. So much so that buyers are often unable to get through properties before they are placed under contract - you have to be quick. Properties are selling within days of hitting the market or in a lot of cases before they are even advertised.“Many potential vendors are looking at this activity and are considering selling for a record price, but in the back of their minds a lot of potential vendors are asking themselves, “If I sell, where do I go?,” Mr Campbell said.“I’m asked this question almost daily from vendors. This mentality is driving a lack of supply thus putting further price pressures on available stock.”In 2021, Ray White South Australia | Northern Territory new listing authorities were up 17 per cent on this time last year but so were buyer numbers. Loan Market pre-approvals have also increased a massive 117 per cent in 2021 compared to the same time in 2020.Buyers have been flocking to regional hubs like Mr Campbell’s Adelaide Hills region to escape high density living in a post pandemic work from home world. In the latest internal migration estimates from the Australian Bureau of Statistic, South Australia reported its largest population net gain since the September 1991 quarter with many migrants coming from New South Wales.Mr Campbell had a few tips for potential vendors who are concerned about not finding somewhere suitable to move to.“The trick is to talk to your local agent, let them know exactly what you are looking for and be ready to snap it up. At Ray White Woodside approximately 70 per cent of our current listings are selling off market at the moment,” he said.But added that motivated vendors are in a great position at the moment.“They are able to capitalise on a great sale price for their current property as well as potentially capitalising on future gains on their next purchase,” he said.“When people say there is a shortage of properties to buy - the very day someone decides to sell their property they start looking at what is on the market.“During this period the vast majority of vendors find a suitable property to buy with a settlement date that fits in with what they are selling.”Downsizers Darcy and Lynn Walsh had been planning to downsize for several years. The couple finally pulled the trigger, selling their 17 Henry Rd, Blakiston (pictured above) acreage property for $1.010 million through Mr Campbell.“We’ve since bought our next property and the fact that we opted for a long settlement has made it easier but luckily, we are fairly relaxed so we knew something would come along,” Ms Walsh said.“We are also lucky in that despite our settlement periods not overlapping, we have a caravan which we plan to go travelling in and we can stay with our daughter. I’m not sure I would advise selling before buying unless you’re able to make a plan in case you’re not able to find somewhere.”Loan Market Woodside director Danae Campbell also had some advice for sellers who found themselves on the other side of the transaction.“When you start looking, talk to your finance broker about bridging and other finance options. Bridging Finance will provide you with the opportunity to buy first and sell within six months if you feel that you need extra time to find your next property,” she said.