You've probably heard the reports about the Australian property market being 'flat'. What does it mean to have a flat market and what are the implications for you as a buyer or seller?

'Flat' is a stage in the housing market where little or no growth occurs and there is slightly more supply than demand. Buyers tend to be cautious and sellers tend to hold on to unrealistic price expectations.

If you're buying, selling, or trading up, here are a few points to keep in mind.




Buyers

The biggest message for buyers in a flat market is not to be scared away, because market conditions actually favour the buyer.

It's a great time for negotiating a deal because there are often fewer buyers, a greater selection of properties and at better price points.

While some sellers may be unwilling to accept their home's value has dropped, others are prepared to listen to the market accept market value for their property.

Given the flat market there is a smorgasbord of investment properties currently on the market, making now a great time to invest as rents have stabilised and prices are almost back to a level reminiscent of the more affordable pre-boom market.

Sellers

For sellers, the message is to keep your price expectations realistic and focus on how best to present your home.

You need to ensure your home competes well in the marketplace and stands out against other similar homes for sale in your area.

The properties that are selling well have been well marketed, well presented and priced directly in line with the market.

With so much competition out there it is advisable to use an agent who employs marketing techniques that make the property standout above the others, a little extra attention can make a huge difference at the point of sale.

Traders

You are in the winning seat if you can manage to buy and sell at the same time.

A flat or deflated market can be the best time to trade up because you may be able to afford a home that was previously just out of your reach.

The key factor here is while you might not get every cent you were looking for as a seller, you have an opportunity to make up that difference and some by reinvesting immediately.

If you are a buyer with cash right now you can find some fantastic buys in this current market. 

Missed a story? Check out our extensive News Archive.