The release of the latest statistics certainly confirms the anecdotal evidence that we have entered very interesting territory in terms of the market. It raises heart rates and expectations but also some complications.
The February Cooley Index reported an auction clearance rate of 84% with a staggering 85% of results secured above the reserve price. That is extraordinary and it’s equal parts terrifying for potential buyers and exciting for potential vendors.
To be brutally honest it is also quite terrifying and exciting for real estate sales agents!
Our team monitor market activity very closely. We watch the macro numbers coming out which reflect generic activity and sentiment so we can factor that into property valuations together with the precise and in-depth local precinct knowledge.
So, with national dwelling prices rising 0.4% in February, 1.8% over the three months to February and 5.9% over the last year the team certainly need to factor in strong demand when providing potential vendors with an estimated selling price.
And in these days of a rising market, it is important to remember that the role of a sales agent is to provide a realistic guide and then to work like crazy to exceed it. In the best interest of our clients, we must be realistic rather than optimistic.
We need to manage expectations, which I admit is pretty tricky when the news of potential double-digit growth and record returns are dominating the national conversation. Everyone is hoping for just that little bit more.
However, in these situations, the facts remain vitally important. Price guides are based on facts rather than speculation. Vendors can be hopeful of achieving more but starting with an inflated expectation has the potential to end in disappointment. If your starting price has already factored in a substantial premium based on assumed demand, then it may be tough to then expect that little bit more.
The right sales agent will provide the right advice and that includes the right guide price. As I have said already sales agents will work long and hard to exceed the guide and as a campaign rolls out, they’ll adjust it accordingly to ensure expectations remain true and fair.
And rest assured, the aim is always to deliver that little bit more.