There is no denying it anymore, South East Queensland is experiencing a real estate boom. So how do you buy well in a booming market.
One of the biggest risks in a booming market is FOMO – the fear of missing out. It causes buyers to make decisions that could have far reaching ramifications. But there is a way to control your risks and end up with your dream home or investment property.
Is Brisbane really booming or is it just real estate hype?
It might be tempting to dismiss media reports of booming markets as just baseless hype. After all we hear all sorts of interesting tales about the property market every day – it’s going up, it’s overpriced, it’s going down.
But the commentary around the booming property market in Brisbane has legs, let me explain why.
When the number of buyers far outweighs the number of houses listed for sale for a consistent period of time, there is a lot of pressure put on prices and they generally start to rise. If these market conditions continue for more than just a few months and prices are rising rapidly, this is generally known as a booming property market.
It is a tough place for buyers to be, especially if you don’t have a lot of time, have a full-time job and you can only inspect properties on Saturday.
In a lot of cases, you might find that properties are sold by the time you eventually get to see them.
Where is the evidence that Brisbane property is going through a boom period?
Agents are consistently reporting record numbers at open houses – one reported over 150 people lined up for 200m to see an average family home! And from our position as buyer’s agents with our feet on the ground, we are seeing multiple offers on just about every property, and they are selling within days or even hours of being listed.
We also closely monitor prices during uncertain markets to and our current data analysis reveals that showing properties are selling for 5-6% above comparable sales in the past 6 months.
It might be tempting to withdraw and – as one first home buyer told me he was going to do – wait for property prices to go down.
Putting your head in the sand is not a viable strategy. By the time there is a better balance between supply and demand, what you could have purchased today will be well out of your price range.
How do you make sure you don’t end up buying the wrong property or paying the wrong price
The biggest risk you face as a buyer in a rising market is letting your emotions take over and in a moment of weakness buy the wrong property or just as bad, pay too much for the right property.
There are a number of things you can do to put yourself in the best position to buy your dream home when it comes up for sale.
Buyers who are successful during boom periods make sure they are very active and do things differently. They are the ones who are the ones who are on the ball, talking to agents and arranging inspections the moment properties are listed online. But they also go a step further. They talk to agents daily about what is coming up and what it is they are looking for. Now unfortunately in a booming market, agents are talking to so many buyers every day that you simply cannot rely on them to get in touch with you if they have a new listing. But if you do a bit of detective work you can learn a bit about them. Many of them will post new properties on their social media or send them out to buyers who are on their email database before listing them online.
As buyer’s agents this is one of our secrets to client’s success – our ability to get to properties before most other buyers, assess those properties quickly and negotiate well even if there are multiple offers.
To find out a bit more about how to stand out and be successful read our BLOG – How to stand out in a boom market.
We understand that being a buyer in a booming real estate market is daunting and at times might seem hopeless.
But stay strong, realistic and active and you will be successful.
Download our list of 5 ways to access properties before everyone else does to get yourself in the best position to find and purchase your next home or investment property.
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To talk about your own plans, contact one of our passionate Property Pursuit Buyers’ Agents.