In this week where there is such focus on Australian identity, I think everyone would agree that one of our national preoccupations is residential property. As the market shifts in 2023, I expect the market focus will be on ‘value’ and that’s tricky. Here’s why…
Is it worth it? I think that’s going to be the most common question sales agents will be asked in the year ahead.
When demand is easing, potential purchasers are more focussed than ever on finding a ‘bargain’ and are reluctant to commit. With a very real fear that they’ll miss the chance to get a property cheaper if they hold off.
Analysis shows values in Sydney have already moved significantly from the extraordinary highs seen only this time last year. You could expect that to motivate property purchasers to get into the market now, as expectations have adjusted. However, as the market has moved, (motivated by uncertainty around the impact of interest rate rises), the fixation on when to get in and when to get out of the market is at a fever pitch. That fixation is always based on value.
So, what is the answer to the question of value? The answer is… That there is no definitive answer. No, I’m not avoiding the truth, I’m telling the truth.
Morton agents will always provide a guide price based on rigorous research, their local expertise and professional experience. But the real figure will ultimately be determined by the price someone is willing to pay.
My advice to potential purchasers is to seriously consider what it is you want from a property and what is your realistic budget limit. When I say ‘what you want’ I don’t just mean in terms of bedrooms and bathrooms. Consider your stage of life, your family situation, your lifestyle expectations and your existing assets and retirement plans. All those factors will help you determine if a particular property represents good value for your specific circumstances now and into the future.
I know those things are pretty obvious, but they are why the ‘value’ question, whilst a good question to ask, is also so hard to answer. You can, and indeed should talk it through with your Morton agent. But the ultimate answer is, a property is worth what you are willing to pay for it.