When the market is going gangbusters as it is right now we’re flooded with reports of new property records being set. In Sydney record numbers of properties have been taken to auction and there have been several weekends in a row with record clearance rates well above 80%.
It’s great to see so much positive market activity and that positivity is certainly reflected locally as well, but it’s when the market is so hot that I find it important to remind clients it won’t be like this forever.
No I’m not trying to dampen the mood but in my view now is the time to put it out there that even if the records stop, it doesn’t automatically mean the market is broken. It might just mean it has gone back to normal.
And the fact is, after such a sustained period of great results it can be hard to remember or distinguish exactly what is ‘normal’.
‘Normal’ is when the market ticks along perhaps delivering solid but not necessarily spectacular results. It will be a week when healthy sales are secured but no records are set.
It doesn’t mean the ‘bubble’ has ‘burst’. It just might mean it has gone back to ‘normal’ and we should never lose sight of the fact that a consistent market still can deliver security and value.
I anticipate the next couple of week are going to remain incredibly hectic in the lead up to Easter and even the days through until Anzac Day. But inevitably as Winter draws near there will be an easing and that’s when the worriers will start to talk about the doom of a ‘downturn’.
That’s when you need to remember what I’m telling you today. A week when no records are set isn’t a wasted week. It’s just another week where good property deals will have been done.
Records can set unrealistic expectations. Enjoy them when they happen but be careful not to rely on them.