We are in a strong seller’s market in Adelaide. A shortness in property stock and considerable buyer competition has left Adelaide’s property market in a flurry of action, with enormous open home attendance, frequent letters of offer and high purchasing prices.
For principal of Harcourts Packham, James Packham (photo right) this has been made evidently clear. “I have observed, across the market a heavy reduction in the volume of homes listed for sale; in some areas listings are down more than 30% from the same time last year. The number of buyers in search of a home however seems largely unchanged. This has caused a ‘seller’s market’ where a large volume of buyers find themselves competing over a reduced volume of available homes for sale,” Mr Packham said.
Sales representative Ben Gow, of Harcourts Sergeant shares a perfect case study that reflect the conditions of the market. “3 Penrith Street, Redwood Park. I had the property live online Thursday afternoon with the first open on the Saturday. The open attracted 61 groups and due to the demand, I opened the home again on the following Monday evening, which attracted a further 27 groups. A total of 88 Groups in 2 opens. The property had 9 offers received, 4 were above the top end of the advertised ra
Another property that fellow Harcourts agent, Mr Packham recently sold followed suit. “At 15 Parham road, Eden Hills we had 130 people in attendance at the first open inspection and received at least 10 formal offers following the open. We advertised the home from $530,000 - $560,000 and sold for over the top of the advertised price range,” Mr Packham added.nge. We were officially sold, 8 Days on the market,” said Mr Gow (photo left).
Mr Gow puts the frantic market conditions down to the current economic climate and the ambiguity that it brings. “Those who have stable jobs are wanting to act faster and get into the market before any further uncertainty hits. Especially those first home buyers. I’ve noticed a huge increase in the market with this buyer group. Most have missed out on other homes they’ve loved so fear of loss has set in. They are happy to part with their money and at times pay well above the price guide to avoid missing out yet again,” Mr Gow said.
“The Australian housing market operates on confidence. Sellers have traditionally avoided uncertainty. Anytime the immediate future becomes a little uncertain such as the case in an approach to a federal election or more recently during COVID-19; sellers have traditionally responded with ‘paralysis’ meaning they simply wait for more information to come to light before actioning any plans,” Mr Packham adds.
Whilst most are hesitant to place their home on the market right now, agents are on the front foot, educating potential sellers that now is the prime opportunity to sell.
“The old saying goes ‘supply vs demand’. Currently supply is at an all-time low, yet buyer demand is at an all-time high. Add huge amounts of buyer competition to open inspections, fear of loss from buyers and that is a recipe for selling your home for the highest price in the shortest amount of time,” Mr Gow said
“There has been a misconception and COVID-19 has effectively created a slingshot effect. The current market provides a great opportunity to attract attention from a large audience of buyers and achieve a high price with shorter days on market,” Mr Packham added.