Don’t hit panic button yet
— 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.