The perfect sellers storm: Red hot market predictions for 2021!
As we entered into 2021, we also entered into unprecedented territory for our local real estate market. We began to experience the hottest ‘sellers’ market’ that we have ever seen. In our 16 years of selling real estate, we thought we had seen every market possible. From the GFC with prices tumbling literally from week to week, to first home buyer frenzies with government grants driving prices up, the highs and lows of our local market have been incredible.
What we haven’t experienced until 2021 however, is the lines of home seekers snaking down the streets at our open homes. A typical very good open home may have 20 or even 30 buyers through the doors. This year we have experienced numbers into the hundreds swarming into our open homes. This has been followed by multiple offers on properties and a plethora of internet and phone enquiries continuing to stream through, even long after the property is under contract. This new, unprecedented demand from buyers, coupled with lower stock levels and low interest rates has literally created the perfect selling storm!
It seems that this is not just a local phenomenon either, with reports from all over the country reporting similar stories. Lines of buyers queuing at open homes and real estate data showing a sudden surge of buyer enquiries at a time of low listing numbers. And with low interest rates expected to drive more buyers into the market, this has left home seekers far outnumbering listings and competition has reached a fever pitch.
Along with the low interest rates, we believe a number of other factors are driving the demand. Firstly, there is a great deal of pent-up demand from property buyers who held off on their searches last year due to the uncertainty of Covid. So it’s likely we are playing a game of catch up here.
Last year, many people put things on hold as they waited to see what would happen to our economy. That uncertainty has now gone away and people are ready to buy. There’s still limited stock with few quality homes on the market, and this is frustrating for buyers who are more likely to act quickly when something ideal does come along in fear of missing out.
“People understand it’s going to be a strong year for real estate. They want to get in early,”
There is also the fact that people aren’t travelling like they have in the past. Couples have conversations and they decide that this is the year that they are finally going to buy so they start looking.
FOCUS PROPERTY
26 Parker Street, Shailer Park
When it comes to features that rate high on our local buyer’s wish lists, then 26 Parker Street is the property that would have to have EVERY.SINGLE. BOX ticked! Marketed by our team in February 2021, this home has taken the award for the most sought after property we have sold…ever!
It has always been the great Australian dream to own a home like this. Much of its appeal lies in the stellar yard. It’s a 1/4 acre flat block (tick) has double drive through side access (tick, tick), a new 2 bay shed (big tick), a pool (tick), a standout entertaining area (tick) and a granny flat (this one’s a nice bonus for most). We could add many more ticks as the main home is fully renovated, has ducted air and plenty of space with good separation in the two living zones.
Despite the home ticking so many boxes, we still did not anticipate having somewhere in the vicinity of 200 people through our first open home. Lines literally snaked right down the street, buyers themselves could not believe the spectacle. Many later told us they turned around and went home when they saw the queue, it was that imposing.
Needless to say, the home sold after that first open home. We ran our online auction system (which is perfect for dealing with the current market & has rave reviews from buyers and sellers alike) where many bidders competed to secure the property—driving the price well over expectation.