It’s happening. Even though the festive decorations have been creeping into our lives, in supermarkets and on streets, many of us have been blithely ignoring the signs, scoffing that it’s ‘too early to start thinking about Christmas’. Now, suddenly, the realisation has hit. The holiday season really is just around the corner. Panic!
And I think now is the perfect time to remember how important it is to stay calm…
It’s my new mantra. Stay calm. If you feel like things are getting out of control, just take a moment to steady yourself. I don’t mean to sound like I’m quoting a desk calendar, but I do think it’s good advice and particularly relevant to those navigating the residential property market.
Over recent months the market hasn’t provided the smooth ride we have grown accustomed to. Actually, if I’m being honest, it has been relatively smooth, but values have been going down rather than up, which is obviously not what vendors want to hear.
Regardless, I think there are some things worth highlighting. I’ve said it before, but I want to say it again. The market is not in crisis. Yes, it is easing but it is still chugging along, and deals are still being done. So don’t panic.
Last week the Sydney auction clearance rate was almost the same as this time last year, which shows there is still activity. Granted, there were 40% fewer properties taken to auction last week compared to last year (which shows there is a level of nervousness) but it does create an opportunity for vendors and purchasers willing to be proactive.
The other point worth reiterating is, (as was highlighted in an article I read this week) after years of economic and political turmoil there is a growing focus in Australia, and across the world, on finding ways to feel safe, secure and stable.
And I think residential property has a significant role to play. There is a very real place for residential property in that search for security, as both an investment and a home. Property provides a long-term security and stability that few other investments can guarantee. It’s why I think the market will continue to deliver good returns, even if those returns are not to the same extraordinary levels we may have seen over the last couple of years.
So again, my advice is to stay calm. Call your local Morton agent to have a chat but don’t think it all has to be done and dusted ‘before the holidays’. We are here for the long term and I’m confident the market will continue to deliver good value in the long term.