Is It Just a Marketing Ploy That The Residential Real Estate Market Has Come To Life Or Is It Just A Figment Of Our Imagination?
Interesting times living in our world and environment today, “fake” news is spread at a whim, by Governments, vested interests and individuals.
So how does one decipher if what was said has substance or is just fuelled to serve a desired end result?
With this in mind, regardless with whom you are, you would have to be questioning the headlines of the last fortnight in relation to the residential real estate market.
Simply, do I sit on the fence and wait or do I get on board before it’s too late?
For this time of year, real estate listings are few and far between. Numbers are down by about 100+ properties per weekend for this time of year. Hence, shortage simply provides a degree of pent-up demand. If I don’t purchase by mid-December and it is now mid-October, I’ll probably have to wait until March/April 2020, hence timing is a consideration. The message simply is, “make sure you are purchasing what you want and for the right price – don’t be fooled into thinking that there will be no real estate property for sale come end of 2019”.
Do you honestly believe that “under-quoting” has been resolved? Not by any stretch of the imagination and in fact I, as a professional of some 25+ years would go so far as to say that it is worse today than when the Real Estate Institute of Victoria and Consumer Affairs started to re-evaluate the process some two (2) years ago.
How is it that only one (1) in a large number of real estate agencies throughout the Metropolitan Melbourne area get prosecuted when you look at a sample of say five (5) out of ten (10) properties having incorrect details, sales and value range on their Statement of Information.
Why is it that I hear and see headlines that a property sold $100,000 to $1,500,000 above the value range in the Statement of Information, being well in excess of the required 10%. Seriously, you have to be kidding.
Why is it that real estate agents are not reporting results? Why is it that real estate agents are asking vendors not to publish results obtained via sale? I will leave it to you to read between the lines. Simply, unless action is taken, “under-quoting” will continue to bring the real estate process as we know it undone.
The next point of contention is the “media” in general. Real estate sells advertising space regardless of print and/or social media space with advertising payable at a premium. The best example being “The Block”. Keep the headlines up and positive, otherwise we will all fall down.
Other considerations to think about in the marketplace for the last quarter of the year, if money is supposed to be available at sub-point .75% in the coming period. How likely is it that real estate will rise? Why would it increase when rents will eventually start to soften, wouldn’t yield returns soften and wouldn’t demand also soften, depending on the underlying value of what money is worth and hence, devaluation of asset classes?
Try not to get caught up in the usual end of year circus within the real estate market. Sensationalisation of headlines usually entices potential purchasers into the real estate market fray. With a short period to year end, be aware that property is definitely not going anywhere soon. Real estate agents are providing a mantra that we hear every year on year, but this year the “fake” news may not really add up to forget the basic fundamentals of real estate and property in general.
We look forward to hearing from you as soon as possible.
Please contact Mark Ruttner (0411 419 674) or Jim Derzekos (0412 361 367)
Office 03 9690 1112
First Valuation Group
Ground Level, 18-22 Thomson Street
South Melbourne, Vic 3205
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