Ignite is one of the most exciting local initiatives to hit the Wagga Wagga community, and it has plenty of chins wagging. Find out about Ignite when Anne Delaney from ABC Riverina talks with Adam Drummond, one of the Co-Founders of Ignite Mentor.
[button url="http://blogs.abc.net.au/files/ignite-mentor-adam-drummond.mp3" target="_blank" size="medium" style="tealgrey" ]Listen[/button]
It sounds impossible doesn’t it. Everyone always says, “there’s no crystal ball, but when will the market change?” And they’re right. There is no crystal ball – but there are signs.
Take the 2009 NSW residential property balloon as an example. When the inflated first home buyer grant was reduced back to normal levels, buyers were no longer competing for entry level homes. This had a flow on effect throughout the market as sellers of entry level homes could no longer upgrade.
At the same time the full effects of the Global Financial Crisis were yet to hit Australian shores.
In fact, the “Build a Better Education” scheme and increased first home buyer scheme were deemed by the Government at the time to be our saviours during economic turmoil. They believed the stimulus created jobs and construction activity, but forgot to have a plan in place for when it all came to an END.
And end it did. All pretty much at the same time.
Now, crystal balls aside, the writing was on the wall. Supply had increased and demand had decreased – sharply. Investors were nervous about foreign debt, shaky job figures and a Reserve Bank that seemed content to wait it out.
But what were the market signs?
- longer days on market
- increased competition with supply
Within months, listing prices began to drop. From there, the number of sales dropped. And finally, selling prices dropped. In some cases up to 10% from the purchase price to the sale price.
And here we are with some subtle signs of recovery in – Wagga Wagga at least.
- Population growth for the last 12 months is higher than forecast
- $640mil in private and public development and infrastructure is being invested into the local economy
- Interest rates are still low
- Employment is steady
and here is the big one;
- Compared to June/July 2011 when there were 1,180 properties advertised in the local paper, 2012 June/July figures show 885 properties advertised (supply is lower)
Now whilst demand has not increased exponentially, less properties on the market means less to choose from which will increase competition. This coupled with some local economic confidence will lead to a slight increase in buyer demand as will the increased population growth.
So there is no crystal ball, and absolute predictions are impossible…but you tell me – “is the writing on the wall”?
Fitzpatricks Real Estate Director Adam Drummond and Wagga Business Chamber President Julian McLaren see signs of improvement for Wagga Wagga economy and real estate market in the not too distant future. Click to read more…
I wish I could say that when I go to work, everything will be predictable and easy. It’s not. No matter how many measures you put in place to safeguard against things going wrong…things can just go wrong! The most frustrating things occurring for home sellers in this market are;
- Long days on market
- Not achieving an offer
- Not achieving an acceptable price
These are usually driven by up to three elements of the sales process that may not be correctly set;
However, even with all three seemingly aligned, sometimes there is just not the volume of buyers…and that is the frustrating part. As agents we sometimes do end up being blamed for market conditions, however in most cases if an agent is keeping their vendor informed of activity and trends in the current conditions the blame will fall on the faceless suspects; the market, the economy, the government. The funny thing is, if marketing, presentation and price are aligned, it’s not really anybody’s fault. What really annoys people in real estate transactions, are human errors of judgement. Here are some recent examples I have heard of;
- Agents not returning calls or informing owners of activity
- Buyers making offers that are accepted and then pulling out of the deal with no reason for the owner
- People making times with the agent to inspect a property and not showing up (even after a confirmation phone call)
- Miscommunication over inclusions and exclusions at final inspections
When home sellers are spending hours and hours preparing their property for inspections, of course they will be frustrated by no show inspections, no feedback and rescinded offers. Is there a solution to such dilemmas? Can one intervene when someone else is making life difficult? Probably not. What we can do, is apologise on behalf of the other party and work just as hard to achieve the desired result. Nobody likes prices dropping, lack of activity and depressing stories of economic times in the media. What people do appreciate is knowing what is happening, when it is happening.
I’ve created this site because I have an awful lot going on in life, and this is a way for people who deal with me in different areas to view what is relevant to them. For example, if you are looking to buy or sell residential property in Wagga Wagga, you may like to skip to this profile video.
If you are looking to contribute back to the community and would like to learn more about charities that I support and that you could be involved in, you may want to start here or check out more here.
If you like to read blogs about things relating to:
Then click the above links! You won’t agree with every one of them, but they may get you thinking about things from a different perspective!
Anyone who would like to engage me to speak to a group from 5 to 500 + check out some of my snippets in this speech page.
I’m also a bit of a “professional” jester so you may want to see some remarkably foolish antics in my “The Office” sketches. Or not, if you don’t like this kind of humour (which some don’t – I’ll admit”.)
So that’s about it…blogs, videos, charity and real estate. If you find yourself searching and getting a bit confused by my personality and interests…you’re probably not alone!