Certainty in an Uncertain Market

At particular times in the property market, it can seem the only thing we can be certain of is uncertainty.  How and if the recent pandemic will impact Penrith’s housing market is yet to be seen, but there is never a bad time for a good investment.  Cautious investors will proceed slowly, but those with an eye for a good deal will be ready to take the risk for reward in the long run.

Investors may be keen to snap up rental properties, however, should be mindful not to buy in heavily saturated areas.  An overabundance of stock, for example non-owner occupied apartments, can make moving the property at a later date a slower process.  If an investor can afford to sit on a property, purchasing land in an area where few vacant blocks are available will keep the property sought-after regardless of the market situation.

Selling a property in a potentially volatile market can be viewed in 2 different ways.  On one hand, conservative vendors may hold onto a property during uncertainty, causing a reduction in stock.  This can have a chain reaction that then reduces houses available, creating competition amongst buyers.  On the flip side, buyers may also be cautious, and vendors need to adjust their expectations accordingly.  It would be remiss of agents to promise overzealous prices if the market is sprinkled with insecurity.  It is advantageous to remain realistic that national and international events may trickle down to our local area, and adapt accordingly.

So while there is no right or wrong answer to how to proceed in an uncertain market, what is paramount is having an agent with their finger on the pulse.  Keeping yourself informed and having an ally that is well versed in every aspect of the local market will be your greatest asset.  We have seen what panic looks like in recent months, but need to keep in mind the ebbs and flows of real estate are an essential element of driving a vibrant market.