Rising interest rates, increasing living costs, Australians struggling to keep up with their mortgage repayments…all continue to dominate our news cycle.
Not surprisingly, these changes have affected the real estate market, and we are starting to see a soft real estate market emerge. But what does this really mean?
In this blog, we discuss what is a soft real estate market so you as a seller can make informed decisions about when and how to sell your property. Let’s dive in.
Soft real estate market explained (in simple words)
A soft real estate market is a market where there is a surplus of properties for sale and not enough buyers purchasing properties.
In these market conditions, vendors are competing for a smaller pool of buyers in a crowded property field. More properties like yours are listed for sale, so buyers can afford to be choosy!
In this situation the small details are important and impeccable presentation is essential as buyers become more conservative on price.
What happens in a soft real estate market? Tips for sellersÂ
In a soft market, properties tend to stay on the market for longer with property sale cycles becoming longer. However, it is still very possible to sell your property!
A soft market is definitely not all doom and gloom, however it does require a more targeted and carefully planned approach, and fortunately, at Atria, this is our specialty.
Tip 1: Ensure you approach selling your property with flexibility. You may need to be more flexible with repairs, open houses, marketing and sale price.
Tip 2: Take these factors into account when hiring a real estate agent. Your agent needs to have great negotiation and networking skills, this is key in a soft market. They must be willing to tailor their service to get you the result you desire.
Tip 3:Â Consider midweek auctions. These can help stand out in your area and cultivate greater interest in your property. This may also work better if you are looking to attract international or interstate buyers.
Tip 4: Together, with your Real Estate Agent, focus the sale process on stamina rather than speed.
It’s just a cycle
Real estate markets are cyclical and change over time. A soft market will eventually turn into a hot market, and properties always gain value over time.
There’s plenty of opportunity to sell properties in a soft market. You and your Agent just need to work together and stay up to date about market trends and conditions, in order to make informed decisions about selling your property.
Email us today or call us at 03 8680 9421 to find out more about what is a soft real estate market, and we can help you achieve your real estate vision come to life.
