How To Assess The Cycles Of The Real Estate Market N G Farah is taking a look at the cycles of the real estate market

The Real Estate market like most things works in cycles. As experienced sales agents, the best advice we can give to anyone looking to buy or sell property is to understand these cycles, act on their instincts and get market recommendations from those who have full understanding of the yearly peaks and troughs.

We know that for most people, real estate transactions are probably the biggest financial transactions they will go through in their lifetime. And although the rewards are plentiful, the actual task of buying and selling is definitely not for the faint hearted. This is why it is recommended they seek advice from a professional in the industry.

N G Farah are specialists in what we do; selling and buying real estate in the South Eastern Suburbs of Sydney. However, we have a distinct advantage over most of our competitors; we have been trading as N G Farah since 1962, building a huge backlog of data throughout that 55 year period which formulates trends in the market place. By assessing the agency’s data and analysing year-on-year trends, we are then able to confidently assess when the best (and not so great) time is to sell.

We can also advise people looking to buy when the best time is to do so and how critical it is to have a great mortgage broker who is willing to negotiate the best financial loan on their behalf.  Dealing with an accredited mortgage broker could save 0.5 – 1% on home loans which can translate to hundreds of thousands of dollars over a 25 year period.

Since 2012, we have seen, and it has been widely reported, that the real estate market in Sydney and in particular the Eastern Suburbs has been on a steady incline. By assessing past market trends N G Farah believe that the market is currently in the fifth year of a seven year upwards cycle. We know that between 1993 and 2003, we experienced a ten year market cycle of increasing property prices. Depending on the economy, banks tightening up their loan offerings and how interest rates are placed, there are still some questions as to whether the current trend of increasing property prices can be sustainable for ten years.

In terms of the yearly cycle, knowing and understanding that buying in the middle of winter could put buyers in a stronger position than buying in the middle of spring may be the key to success. Having the confidence to take advice from real estate agents and not being put off by the slight drop in variety could open opportunities to negotiate with vendors and potentially secure a better priced property.

We are seeing a lot of our clients getting prepared to list in August through to October but that doesn’t mean that stock is not available. Current media reports are sharing that auction clearance rates are down and there is speculation that perhaps the market is slowing, however we know that this is just the natural cycles in real estate and it could present as opportune for the aspiring buyer.