Coast to Coast – Market Conditions are so Varied, yet so Similar
Over the last few weeks I have spent time with fellow LJ Hooker business owners around the country. The differing market conditions across the country is astounding, and somewhat concerned me.
Most recently I visited Western Australia and spoke at their Principal’s Lock Away Retreat at the Margaret River. I was in the company of some serious and big business owners. With all their experience and success, it didn’t take long before the conversations dove into the reality of the Perth market and how much businesses, small and large are suffering.
Now the mining boom is over and the flow of disposable income has dried, home prices have plummeted and sale numbers have fallen by up to 50%. Spirits were generally high, but hearing stories of clients stuck in
a stalemate as they are unable to sell their properties, not because no one is offering, but because the offers are coming in well below the mortgages still owed to the banks. Buyers are enquiring, then intentionally
waiting for the asking price to fall even further before they buy.
Swing over to the Eastern states where in Sydney, for example, home owners are reluctant to sell from fear of being priced out of the market by the time they find and purchase their next home. Prices are souring that fast.
Then here in Adelaide, where the number of signboards on our streets is lower than I’ve seen in my 15 year career. Home owners in Adelaide are reluctant to sell mainly because of the cost of change over. Home prices have remained relatively steady over the years where there simply isn’t enough growth to fund stamp duty, selling and moving costs. However, what ever does come on the market, sells well, provided there’s value.
Three very different environments from coast to coast. Interestingly each with a very similar effect; a significant downturn in the number of homes changing hands. Two questions come to mind, “How much of a flow on effect will this have on our economy and Australian families?” and “What State and Federal policy needs to change to break this stalemate?”