It’s fair to acknowledge that from mid-2022 until the present, we’ve witnessed an astonishingly low inventory of properties being introduced to the market by homeowners.
This situation has resulted in a significant disparity between the surging demand for properties following the reopening of international borders and the inadequate supply to meet this demand. Consequently, a surge in prices has ensued, establishing a seller’s market.
Here at Abode Advocacy Group, we’ve consistently fielded inquiries from clients, family members, and friends alike, all pondering whether the current tide will eventually shift towards buyers. And in response, we’re pleased to report that we’ve begun observing indicators within our business that suggest a potential shift in favor of buyers.
Over recent weeks, there has been a notable uptick in stock levels, and intriguingly, auctions featuring high-quality homes have begun to stagnate and even fail to reach their reserve prices, necessitating vendor bids.
This shift implies that buyers are no longer constrained by the same level of urgency witnessed six months ago, as a wider array of options has become available to them. However, the adjustment that will take longer to materialize is the realization and acceptance among sellers that the market no longer unequivocally favors them as it once did.
Hence, the instances of homes deserving of sale experiencing ‘pass ins’ at present can be attributed to the owners’ initial reluctance to adapt to the new value of their properties.
Reflecting on our counsel to our buying clients from three to six months ago, we had recommended selling prior to purchasing precisely due to this unfolding scenario. We held the view that the zenith of the seller’s market had been reached, with an impending shift towards a more subdued market that would facilitate purchases at more advantageous rates.
Indeed, we’ve monitored numerous properties on behalf of our clients and witnessed substantial price reductions alongside a noteworthy frequency of agent switches, often accompanied by lower price guides, all reinforcing our convictions.
Given the trajectory, it appears that the forthcoming months should indeed offer a favorable environment for buyers, signaling an opportune time to enter the market. We anticipate that the scales will tip more in your favor.
And remember, if there’s any way we can be of assistance, we’d be delighted to arrange a meeting and engage in a conversation.
