The PROPERTY DOCTORS, Sydney Australia Novak Properties
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The PROPERTY DOCTORS, Sydney Australia Novak Properties
EP. 1339 - On the doorstep of the Real Estate Internet Explosion!
Unlock the mysteries of the festive real estate market with expert Billy Drury! Ever wondered why many homeowners pull their listings in December only to return in January with newfound zest? Join us as Billy uncovers the psychology behind these seasonal shifts. From pre-approval pressures to the captivating spike in online property searches, discover how the holiday season transforms the dynamics of the market. Whether you’re a buyer planning to make your move or a seller seeking strategic insights, this episode offers a wealth of knowledge to guide your decisions at the turn of the year.
Billy shares data-backed revelations on how the internet becomes a bustling hub for property searches during what many perceive as a quiet period. Despite agents often taking time off, December and January see record-high online inquiries, painting a paradoxical picture of the market. Learn from Billy about how his team stays active throughout the holidays, supporting eager clients amidst this seasonal quirk. This episode promises to equip real estate enthusiasts with the strategic know-how to navigate and capitalize on the opportunities presented during this unique time of year.
why is it happening? Has it happened and how does it affect you?
Speaker 2:stay tuned billy jury, real estate expert. How are you? I'm a ringleader so I can love. The year is creeping up on us and people are certainly talking about it at open homes Probably the number one conversation we're having. People want to know what's happening, what the hell is happening.
Speaker 1:Rentals with sales. Now 10 short, sharp questions and I'm going to frame these questions up, guys and girls, in December and January do humans have more time to do what they want?
Speaker 2:yeah, absolutely. I think people are on holiday from the 18th of december, that's when schools break, and that's when that you sort of the week before christmas.
Speaker 1:That's when people are jumping on their computers um, do people remove their properties from the market because they think it's Christmas?
Speaker 2:Absolutely For two reasons. One, they think it's just not going to sell and two, they feel like they need a break. They've been on market for the year. They need family time, they need rest.
Speaker 1:They're putting the pause button on do buyers end up um doing the same thing or do they? Are they still eagle-eyed and champion iron for something?
Speaker 2:they go the other way around. Yeah, they've got a combination of time to do what they love. They've also got urgency to buy, and that might be self-imposed or bank imposed. They might-imposed with a pre-approval limit and if they don't buy they need to be reassessed or they might be self-imposed. There's people upsizing, downsizing. They might have sold, they might have a baby on the way, need to buy, they might need to get into places for school catchment Lots of different reasons.
Speaker 1:Do people require bank finance most of the time?
Speaker 2:yeah, most of the time. I'd say at least 60, 70 percent of our transactions do pre?
Speaker 1:do they have pre approvals for 90 days?
Speaker 2:yeah, 90 days, and that's 90 days for an exchange, not settlement. So you can still exchange within the 90 days and then settle in two, three, four months. That's when your bank will give the unconditional finance once they've got the contract do real estate agents go on holidays in december and january?
Speaker 1:yes yeah, do real estate agents convince their clients that it's a quiet period because they're going on holidays?
Speaker 2:Yeah, absolutely. That's no coincidence.
Speaker 1:All the stock launches in week three of January. Ah, so does a lot of stock hit the market after the December January explosion. It is like this great your day.
Speaker 2:Yeah, it feels, I think, year on year it feels like there's a lot of stock and but the reality is it's a combination of new properties that have just waited for getting over New Year, and then there's also a touch of properties coming back to market that might have been withdrawn or paused. So basically, christmas at the peak, we half our stock levels to get to Christmas and then it picks up about another, you know, tries to up like like a quarter of the percent sorry, quarter of the stock that was missing do novak agents, as a result of everything we just spoke about, stay on deck on december and january and don't go to sleep.
Speaker 2:Yeah, I reckon we're one of the only teams that work all the way through for our clients and it's a busy period because, you know, there's, uh, other agents that are away and so they, you know, can help support them, and there's also other, you know, teams in sydney that are away, so clients just turn to people that are open so, after those 10 questions I just asked about, after those 10 questions I just asked about, the explosion, the internet explosion, what actually happens on the internet in December, january, fact and we've got data from realestatecom, from our website, from domaincomau, to support this what happens on the internet with property.
Speaker 2:You didn't mention social media as well. The analytics are crazy, like I'm talking like a 30 40 spike on an increase for for the amount of people online looking at property, inquiring on property, um, and it does translate at times through to open home numbers.
Speaker 1:Sometimes the opens are quieter, but sometimes they're actually quite busy so in december and january they are the record high months for any of the 12 months for property searching on the internet correct yeah, searching on the internet, correct? Yeah, so if I'm selling or if I'm renting, why the hell would I withdraw my property from the market or not come onto the market in this period?
Speaker 2:I think the only reason people you know shouldn't is if they feel like they need a break or if they need um you know the home for for family reasons over christmas. Otherwise, it can be a really good opportunity. A lot of people, a lot of people are going the other direction and if you can be the one door that's open and active and staying on top of things, um, there's a very good chance that there might be a buyer walking through, as I said, with either a self-imposed or a bank-imposed timeline to buy, and it creates magic. It's like a match made in heaven.
Speaker 1:If you're a buyer and you want to find a serious seller, this is the time to find a serious seller. If there is someone doing open homes Christmas period obviously not Christmas Day, not public holidays, but through the Christmas period they've got to be a goddamn serious seller and serious renter and serious real estate agent if they're operating through that period. So message to buyers and tenants out there is this is the time to transact. This is how you easily sort out the boys from the men when it comes to who wants to sell and who wants to rent their property out. These guys aren't. These. These sellers and renters and landlords are not mucking around, they're in business and and what?
Speaker 2:tell us what's happening with stock levels, because I reckon this is the start of the stock level full which was interesting.
Speaker 1:We just spoke about off there before with one, lisa Novak and Billy Drury. This is the first week where we've recorded a stock drop. In 16 weeks we've seen more properties on the market, week by week, by week until this week.
Speaker 2:Yeah, it's interesting. So I think we're about six weeks out from the week of Christmas now, and week on week. It'll be interesting to see if that keeps going down as rapid as it has. Five or 10% this week, I think it was, wasn't it, mark? We lost about 30 properties, yep.
Speaker 1:That's on realestatecomau. Northern beaches went from 980 properties to like 930 yeah, yeah, and you can expect that.
Speaker 2:You know there's gonna be properties not recorded on realestatecom. That will, you know, follow that trend as well. So it's an interesting time. It is a really interesting time. Last year, despite what a lot of other people were saying, the market being quiet at Christmas there was an exchange done from the fish and chip shop Christmas Eve. What fish and chip shop?
Speaker 1:I was sitting at Freshwater fish and chip shop exchanging contracts for two days in dy yeah and you know what, over the years, these christmas eve, new year's eve, these selling, um, it's not just getting off for accepted, but we're actually exchanging them, we're selling them in these periods it is bananas that you know. It happens, people, people. The bottom line, guys and girls, is you can't turn this emotion off if you've got to get the business done and you know and there are dates in the way you will still get it done right. So it's an. You know you have to, you have to feed the monster. You've got to buy or you've got to sell, you've got to rent and you're doing the business.
Speaker 1:Nothing's in your way. If anything, you've got more time than any other time of the year to actually devote some um time to actually, uh, researching and buying and going to see these properties. So, um, don't believe the hype from from. So what I want to say out of today is don't believe the hype that there's not business being done. Don't believe the hype that it's quiet. It's the opposite, it is busy, fact. And don't believe that you won't be able to buy or sell through this next sort of eight-week period we have consistently been open through this period for almost 20 years and it is bonkers, so get in there.
Speaker 2:all right, can I leave my um, my finishing piece of advice for buyers and sellers? If the because obviously they're worried about christmas dates and public holiday dates getting in the way, yeah, um, if you find a buyer, um, or the buyer finds you and you want to do a deal and your solicitor's not around, or their banks on skeleton staff, you can. To do a deal and your solicitor's not around, or there are banks on skeleton staff, you can always propose a 10-day cooling off period, that's, you know, 14, pretty much two weeks by the time you factor in your weekends. That'll get you through all the holiday dates and it still gives some kind of commitment from either side.
Speaker 1:Wow. Well, there you go, beautiful people. That's how that's my christmas tip. Uh, just quietly. I've bought property on purpose in this period because I thought it was just a great period to transact and I had time, and we're witnesses of happening all the time.
Speaker 2:So get in there yeah, and, and the open homes for the next three weeks. So get in there. Yeah, and, and and the open homes for the next three weeks. Everyone's either talking about a short settlement or positioning themselves. Um, there's not many people that you know researching for next year. I think they'll start looking in january. These, these people are ready to buy the christmas rush, the internet explosion.
Speaker 1:It is a real thing. Have a great day. See you later, guys. See you guys.
Speaker 2:Thanks, Billy.