It appears that the current trend (more competition between properties than buyers) is going to continue.
When this happens sellers are on the back foot and buyers especially those who come to the crease fully prepared can expect to get a few past a nervous batsmen; the vendors in this instance.
According to John Kovacs, Managing Director of NMDData.com.au, the problem facing sellers for the foreseeable future is maintaining averages, so a drop in auction clearances is quickly followed on with a corresponding drop in prices.
There is an upside and this is that more buyers may be tempted back into play.
The smart players have waited for this to come and they know that the market is easing. “If this is you, you’re in the box seat. You’re only problem is finding the right property at the right price” says Kovacs.
NMDData.com.au has collated and listed distressed properties right across Australia for the past 12 years. Their categories include listing Residential & Rural Mortgagee Foreclosures, Deceased Estate’s, Executor, Public & State Trustee’s including Commercial and Industrial Properties under receivership, administration or liquidation.
Historically these properties are perceived as the best value and highest yielding real estate opportunities - even when there is fierce competition between buyers. Now with a clear tailing off in demand, exceptional value is available for those who prepared earlier. “10- 15% under market value is achievable right now with more savings to come” predicts Kovacs.
“The vendors in this space are not emotionally attached to property and have a clear mandate to sell. They are required to realise debt and costs and as the market dictates, and to accept the best price to cover themselves.”
Kovacs says they’ve been tracking a steady increase across all their categories over the past 6 months and predict a further 6 to 12 months of the same conditions as the property market continues to falter.
According to Kovacs, now is the time for those who are serious about property, are cashed up and thoroughly prepared, to get into the game.
