Don’t hit panic but­ton yet

The Advertiser - Real Estate - - Morialta Rd, Rostrevor -

— is flash­ing brightly. In Ade­laide, the num­ber of to­tal list­ings is 8167, down 15.4 per cent from a year ago, RP Data re­ported this week.

In a ris­ing mar­ket, it’s easy to hit the panic but­ton and worry that you’ll miss out on the gains.

How­ever, the Real Es­tate Buy­ers Agents As­so­ci­a­tion of Aus­tralia says in times like these it is im­por­tant to keep your emo­tions in check.

Its top tips for buy­ing in a ris­ing mar­ket in­clude:

Get fi­nance pre-ap­proved so you know your lim­its you show po­ten­tial sell­ers that you are se­ri­ous about buy­ing.

Don’t care­lessly speed up the re­search and buy­ing process to take ad­van­tage of a per­ceived deal.

Avoid low-ball of­fers for a property, as this will re­sult in you not be­ing taken se­ri­ously.

Act de­ci­sively when you know it’s the right property and have done your re­search, or oth­ers are likely to jump ahead of you.

Avoid ask­ing for favours or adding com­pli­ca­tions to the deal. That may work in a fall­ing mar­ket, but not a ris­ing one. Just be­cause property prices are ris­ing doesn’t mean you’re go­ing to be left be­hind.

It’s very rare, par­tic­u­larly in Ade­laide, for property prices to rise more than a few per­cent­age points in a year. Syd­ney’s house price growth of 14 per cent in the past year has been spec­tac­u­lar. Mar­ket forces — such as low hous­ing af­ford­abil­ity, a slug­gish econ­omy and the po­ten­tial for higher in­ter­est rates in the next year — sug­gest there is un­likely to be a big boom in the months ahead.

Buy­ing in a ris­ing mar­ket is not rocket sci­ence, but it may re­quire some steely nerves.

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