Most market watchers were anticipating that once the election was over we would return to a normal, albeit somewhat lean, September.

However if in the aftermath of the election we see more buyers and sellers adopting a “wait and see” approach, it will mean an even quieter early Spring.

A large number of buyers and sellers are conservative and big decisions – like buying or selling a house – tend to be put off if there is an excuse.  So it is probable that with the ongoing election uncertainty they will move into their own form of “caretaker” mode i.e. Let’s wait and see. Meaning: Let’s do nothing.

This coming weekend is an auction biggie and with sellers already partially committed – in that they can choose not to accept an offer but they can’t stop the auction - the big question is what will buyers do?

Nobody could say the Melbourne Spring market has been boring in recent times. In fact 2006 was the last “normal” Spring market. Since then we have had the 2007 Gangbusters Spring Market; the 2008 GFC Spring Market; and the 2009 Recovery Spring Market.

Spring 2010 may well provide us with yet another Spring Market Scenario – perhaps we could call it the “Hung Market”.

A Hung Market could be one that is indecisive in terms of stock level or demand and therefore ultimately inconsistent in terms of price.

What that means for you as a buyer is that you are going to have opportunities and issues.

Some opportunities

• If you are negotiating on a house that you think meets your needs but you’re not desperate to buy, you may be able to work the price better.
• Given the reduced competition at auctions, vendors may be more ready to do a deal before going to auction.
• There may be more off-market sales – and you may be able to negotiate better prices if you know where to look because some sellers may be more keen to sell in a “Hung Market” than in normal Spring markets.

Some issues

• Methods of sale will most likely change and there will be an increase in pre-solds and post-auction negotiations – so you need to have strategies and expertise to deal with this.
• There may not be as many good properties coming onto the market because a number of discretionary vendors might not even go to market. Therefore if you see a good home you will need to consider a couple of different strategies: one to secure the property and one to pay a fair price.

In our opinion bidder numbers (which are already low according to our Demand Indicator Bidderman) will be the key indicator as to the “election effect”. So with the election uncertainty the talk will quickly move from Spring Stock levels (supply) to Bidder numbers (demand).

Who said property is boring? Stay Tuned!

We Only Buy Homes