{"id":14686,"date":"2017-11-13T01:00:26","date_gmt":"2017-11-12T14:00:26","guid":{"rendered":"http:\/\/www.realestatetalk.com.au\/?p=14686"},"modified":"2017-11-13T01:00:26","modified_gmt":"2017-11-12T14:00:26","slug":"the-shift-from-buyers-market-to-sellers-market-ben-kingsley","status":"publish","type":"post","link":"https:\/\/channels.realty.com.au\/realtytalk\/the-shift-from-buyers-market-to-sellers-market-ben-kingsley\/","title":{"rendered":"The shift from buyers market to sellers market \u2013 Ben Kingsley"},"content":{"rendered":"

What happens when a market turns from being controlled by buyers to being controlled by sellers? Well the answer is the prices are always impacted. So how do you identify the type of market you will be buying or selling in? Ben Kingsley<\/strong> provides some thoughts on that.
\nTranscript:<\/strong>
\nKevin:<\/strong>\u00a0 What are the signs that the market is turning from a buyer\u2019s market to a seller\u2019s market or a seller\u2019s market to a buyer\u2019s market, and really why is it all that important? I\u2019m going to discuss that now with Ben Kingsley. Ben is the CEO and founder of Empower Wealth and also the chair of PIPA.
\nBen, thanks for your time. Do you guys think about this all the time \u2013 where are we? And why is it all that important? How do you measure it?
\nBen:<\/strong>\u00a0 Yes, Kevin, we absolutely think about it. It\u2019s critical. At the end of the day, the reason why we\u2019re buying property is we want it to grow in value. If it doesn\u2019t grow in value and we\u2019re servicing the mortgage and the interest on that mortgage, there\u2019s no return on investment. So, it really is something that we study deeply, because it is all about the investment return.
\nThere are definitely things that we look for in the research that we do around that. So, how do you get to that research? The first thing I look at is auction clearance rates in city centers where auctions are the preferred means of selling. Certainly Melbourne and Sydney are a great indicator, because they give me real-time feedback. They give me feedback to know what sort of clearance rates are moving.
\nIf we were to think about it, 65% or 66% and above is where we start to see more of a seller\u2019s market, and anything below that, we start to get into a buyer\u2019s market. That\u2019s where the clearance rate is around that 65% range. That\u2019s the indicator. Now, if we start getting up to 75% to 80%, we\u2019re really in a great seller\u2019s market, and there\u2019s obviously growth being had there, because there\u2019s a lot of competition. So, if you have that, that\u2019s one great mechanism.
\nThe other one is, when you\u2019re out in the field and you\u2019re going to open for inspections, have a look at the number of people who are going through the property. Ask the agent how has the interest been? You\u2019ll be able to visualize that interest as well. If the sign is going out and there\u2019s five other parties waiting out front, then you know that obviously has a bit of interest. And if that\u2019s consistent with the five or six properties that you might inspect on a Saturday morning or a Saturday afternoon, then it\u2019s important to read that market play in the field.
\nIn terms of the statistical tracking that you want to be doing, stock on market is another great way of doing that. So, how do we do that? We go to the search engines, so the property portals, RealEstate.com, Domain, those types of portals. We just put in the suburb and we\u2019ll put in the type of property that we might be interested in \u2013 being house or unit or so forth \u2013 and just hit the Search button. It\u2019ll bring up the number of properties for that particular suburb.
\nNow, as a little tip to the listeners, make sure you tick off the button that says \u201cneighboring suburbs,\u201d so you just get accounts for that particular suburb. And that will give you an idea of the stock on market.
\nNow, the lower the stock, the better. You want to be tracking that over a period of time, and that will give you an indication of whether stock is coming down or going high, because ultimately this is all about demand and supply, Kevin, isn\u2019t it?
\nKevin:<\/strong>\u00a0 Absolutely. Another thing I always like to do, too, is work out how much stock is in the market. In other words, if no more stock came on the market, how long would it take to sell all of that? The lower that becomes, also the more demand you have for property.
\nBen:<\/strong>\u00a0 Yes. Days on market, so it\u2019s effectively how long are these properties taking to sell? Now, when you\u2019re doing an aggregate of that, you use the same principles. If you\u2019re going to do this yourself, you\u2019ll set up a little spreadsheet, and you\u2019ll track those properties, and you\u2019ll see how long to take to sell.
\nYou\u2019ll also ask the local agents what\u2019s the average days on sale at the moment for these types of properties? Ask two or three agents to get an idea, if you don\u2019t have the time to sit there and do the analysis yourself. That is obviously a terrific way of seeing this. So, the lower days on market the more interest there will be.
\nNow, just also remember if you\u2019re in an auction market, the days on market should still not come under 20-odd days, because what you\u2019re normally seeing is four- or five-week marketing campaigns before they actually sell the property.
\nThe last one that also comes into that is average vendor discounting. So, what sort of discounts are we seeing from what the property was offered for? If we\u2019re not in an auction market and we\u2019re in a private treaty selling market, advertised for $400,000, sold for $380,000. So we\u2019re getting a percentage of the vendor discount that\u2019s going in that market. Some of those search portals and CoreLogic, and those types of players provide a bit of that data.
\nAnd one final one, Kevin, which is really interesting. When I know that I\u2019m looking at a marketplace that there really is still more sellers than buyers, I get commentary. I look at the way in which the descriptions are written by the agents.
\nSometimes, if you\u2019re going to regional areas and you\u2019re having a look around and a couple of the ads are saying that the seller is open to offers, that this is a good buy, that the price has been reduced, those types of things, if you\u2019re getting a bit of that sense, then you\u2019re probably buying in a marketplace that is still potentially correcting itself, as opposed to showing signs of improving.
\nIdeally, we want to time our entry into a marketplace where there\u2019s evidence of upswing, where demand is starting to exceed supply, because that\u2019s where we\u2019ll find those growth markets.
\nKevin:<\/strong>\u00a0 Very good insight there, Ben Kingsley. Ben is the CEO and founder of Empower Wealth. Ben, thanks so much for your time.
\nBen:<\/strong>\u00a0 Absolute pleasure, Kevin.<\/p>\n","protected":false},"excerpt":{"rendered":"

What happens when a market turns from being controlled by buyers to being controlled by sellers? Well the answer is the prices are always impacted. So how do you identify the type of market you will be buying or selling in? Ben Kingsley provides some…<\/p>\n","protected":false},"author":176692471,"featured_media":14687,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[32,10,11,13,22,23,25],"tags":[101],"class_list":["post-14686","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-buying-a-property-topic","category-kevin-turner-sponsored-channels","category-kevin-update","category-latest-story","category-research-topic","category-selling-a-property-topic","category-sponsored-channels","tag-podcast"],"yoast_head":"\nThe shift from buyers market to sellers market \u2013 Ben Kingsley - Realty Talk<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/channels.realty.com.au\/realtytalk\/the-shift-from-buyers-market-to-sellers-market-ben-kingsley\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The shift from buyers market to sellers market \u2013 Ben Kingsley - Realty Talk\" \/>\n<meta property=\"og:description\" content=\"What happens when a market turns from being controlled by buyers to being controlled by sellers? 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