The Egg on Face Report

The egg on face report

At the time of lockdown in 2020, the market appeared grim, and fear was abundant. None of us knew what to expect so I offered the same suggestions to you as I did to my own family, sell now or be prepared to hold for five years.

Pfft … five years, haha. What a joke! Yes, I have drippy yolk running down my cheeks from the egg on my face.

The Egg on Face Report

The last six months in particular has been an absolute boom market. So, what exactly has happened?

SUPPLY

Pre Covid a buyer could jump on realestate.com.au, search for Robina and on average find a selection of 240-260 properties available for sale at any given time. The number would fluctuate month to month but there was always a reasonable supply and that was about the number.

As I write this article in March 2021 there are only 143 properties for sale in Robina.

DEMAND

Its far more difficult to obtain accurate numbers on buyer demand. The comparison I’m about to use has some issues but it’s the best I can do for now.

A 4 bed house I listed in Robina April 2020 only received 2,954 page views.

A 3 bed house I listed in Robina Jan 2021 received 6296 page views on realestate.com.au

We could easily argue over some semantics in this example however it seems to demonstrate in numbers exactly what I’m experiencing as an agent on the ground. Despite sales volumes being down from low stock, buyer demand has really increased.

I’m getting calls from buyers just asking to be put on a waiting list, they don’t even ask what’s available, they know there’s nothing out there.

 

How much is your home worth today?

HOW MUCH INCREASE?

I’ve had some buyers tell me …”Yeah I know, the market has gone up a hundred grand.” Others say it’s up at least 10%. One thing is for sure, the lagging indicators of sale prices that find their way to the surface two or three months after settlement are not reflecting the current hype in the market. The official national figure for 2021 year-on-year dwellings growth is 5.9%.

WHAT DO WE DO?

Over the long-term real estate always seems to go up in value. So why sell now? Maybe you shouldn’t. Maybe holding on to solid assets that are rising in value is a good plan.

One of the benefits of an improved market is that it takes up the slack from previous problems. There were a lot of people that bought properties at the very peak of the market just before the GFC hit. Many of them were still sitting on assets two years ago that were worth less than they paid eleven years earlier.

Maybe this boom will allow them the liquidity to sell and move on.

Another old maxim is, “Buy in the gloom, sell in the boom”

Where are you in the financial cycle of your life? Are you feeling young and still accumulating all you can get your hands on, or is it time to take the win and set up for some golden years?

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