Our Property expert, Andrew Winter, explains why time is the great healer when it comes to the property market.
In case you've missed the promos running on LifeStyle, starting Wednesday June 25th, the team and I are back taking a retrospective trip down Selling Houses Australia lane - with the brand new series Inside Selling Houses Australia!
One thing that is clear from the footage, stories, homes and people we have covered in the last 7 years - wow have things changed. Not just the Blaze’s countless hairstyles, is it really possible to change your hair do that many times when you only have the one head? Plus THAT gardening chappy looks so young and he used to be polite to me, but that only lasted for a few episodes it seems. As for me - I’ve clearly just gained wrinkles and glasses.
The wonders of the show for me have always has been the variety of people and property. As far as the homes go, a few times this last season, one or two moaned we had too many million dollar + homes, the reality was it was about quarter of the whole season, but surely we all want to know about all areas of the market, I certainly do. Remember season 7 also saw a freestanding house on a corner block for $190,000! So don’t complain, just embrace the fact that troubled sellers appear within all scales of the market.
When I state ‘time is a great healer’, our 7 years covering the Aussie housing market just goes to show the true ups and downs of the residential housing market - from the depths of doom and gloom to mild hysteria and disbelief the home could ever sell for so much.
The lesson to be leant here is at various times in your lifespan as a property owner, you may have to consider selling for a loss just as likely as selling for a profit. Unless you can give the market time, MOST homes value generally and eventually will catch up. This process may be very slow, take many years and even then only get to break even point. In other cases, the wait could have been very worthwhile and your patience may have made you quite literally tens of thousands of dollars, maybe more?
Here are a few examples:
Botany in Sydney - You try finding a 2 bedroom semi in good condition with a garden now for under $700,000/$750,000+ we sold then for under $500,000 and it was a top result.
Glen Iris in Melbourne - Gorgeous character home went in the high 900’s to a very relieved seller, no chance of similar for less, with that block size etc. than $1.2m/1.3m now.
Gold Coast - In other regions where the property cycle has been at different points, we sold a GC mini mansion for mid 800s, maybe now its value may only hit high 700s/low 800s, whereas at one point less than high 600s/low 700s even if you could get a buyer?
Timing is everything and if the market will NOT pay what you want you may just have to wait, unless you know buyers that are happy to pay over market value and there aren’t many.
Inside Selling Houses Australia starts Wednesday June 25th at 8.30pm, only on The LifeStyle Channel.