Are You Struggling With the Established Market? Here’s What You Can Do Instead

 Welcome to Home Building Like a Boss, the podcast dedicated to helping first home buyers in Perth build their dream home with ease and excitement. I’m Jaimi, your host and go to building broker. Are you ready to feel empowered, in control and excited about your building journey? I’ll help guide you with expert advice, insider tips and tricks and real life stories to help you navigate the confusing world of home building.

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Hello, and welcome back to another episode of the podcast. I’m your host, Jamie, as always. Now, it’s been a couple of weeks since I’ve gone live with an episode. Life has been a little bit crazy with lots of things going on. Training new staff member. Selling the house, getting ready to move and lots of amazing new clients on board as well.

So the podcast just dropped off the face of the earth, but, um, we’re back now and getting back to our regular episodes. So today I want to chat to you like, yeah, just a bit of an update on what’s going on in the market. And I think quite a lot of people are experiencing this. Are you struggling? with the established market and trying to find an established house.

Pretty much 97 percent of my new clients at the moment all coming to me because they’ve been struggling on the established market. You know, they’ve been looking for three months, six months, and they’re just getting their offers are getting knocked back. They’re competing with heaps of people that opens prices for houses are so overpriced and need renovations that need work.

So the next option to look at and it is driving. A lot of people to make that decision about building because they’re getting disheartened and upset and it’s tough in the established market at the moment. There’s not a lot of stock and availability of houses and stuff for sale. You know, I was just looking at Rewa then and between like houses, units and land.

4, 000 on the market from the previous week. And this time last year was sitting at about 7, 000. So it’s a huge drop in supply that’s currently on the market as well. And the time, the amount of time that houses are sitting on the market and selling is getting less and less. And I just sold my house currently waiting for settlement to go through, but sold the house and put it on the market early January and accepted offer within six days.

and had 80 people through the house, so it was quite competitive as well in that sense, like speaking from a seller’s point of view, obviously it’s a seller’s market at the moment and That there you can see, you know, the 80 people and it’s, it went off the market in six days. So it is very crazy. And that’s like seeing it from the other end.

And then as a buyer, you know, you’re in that on the other side of it competing with 80 people. People from over east relocating, the lady that bought my house, she’s relocating from Queensland with her family. So, you know, all of those things are contributing to the market right now, and it’s forcing quite a lot of people to make that decision and look at building.

So, that’s what I wanted to talk to you today about, you know, don’t rule building out, it is quite a great option, and you know. It’s tough in the established market. There’s a lot of people competing, looking at houses, you’re paying overpriced. When you build, you know, you’re, you’re moving in to a brand new house.

You’re not having to compete with all these people because there are a lot of people looking at building at the moment. There is, I would say the main struggle in that area is land availability now. So like finding title blocks or untitled blocks and the untitled blocks are getting further and further away because They’re making and developing new land to new areas.

Now that the blocks to get security, you know, titles, June, July, August, September now, which it’s not the end of the world. And, you know, it helps you get into the market, helps you get a block, but you’ve got to be. Quick and efficient in those decisions as well. If you’re deciding to build, it’s not like you can sit on a block for a couple of days and decide and think, you know, there’s people lining up, you know, there’s first hold, second hold, third hold, fourth hold on blocks at the moment.

And if you don’t make a decision that blocks going to someone else, so you really want to know if you decide to build, you want to make that decision and run with it and make your decisions efficiently and effectively as possible. So you can get blocks and areas that you like and things like that and find the right builder for your home.

So, I would say at the moment with building, that’s definitely the challenge, like I’ve got quite a few clients at the moment we’ve been looking for land and waiting for new releases for the last couple of weeks. And you’ve got to have your finger on the pulse with the land. As a building broker, that’s what I’m there to help you with.

And it’s about knowing that too. In the other sense, I have had quite a lot of people who want older areas and older blocks like battleaxe blocks, which is a house behind house. And at the moment, and I say this in quotation marks, those jobs are harder jobs. So there’s quite a lot of builders out there who are now not doing battleaxe blocks or infill blocks because they’re harder jobs.

So it’s harder to help clients now as well get into those established areas because they are are harder and builders are focusing all their time and energy and their jobs and stuff in new estates and new areas. So that’s also a little bit challenging depending on the areas that you’re looking at. You want to make sure you find a builder if you’re looking at older areas and older blocks and blocks that might be a little bit tricky with the site works and things like that before you sign a land contract or you do anything make sure you have looked and researched that what builders will build on that site and one if that and if it’s a good builder and how long what’s the process going to be like because you don’t want to end up with a block and then not be able to find a builder to build on that block.

And that’s, you know, happening in the market as well at the moment, because there’s such volume and high number of people wanting to build that builders are turning away from doing those harder jobs in quotation marks. So that kind of gives you a little bit of an update of what’s happening at the moment.

It is very crazy out there. You know, you know, when you think about it, there’s obviously you’ve got, you know, supply and demand. We’ve got low supply, high demand, there’s people moving into the state and relocating. There’s people wanting to get out of rentals because rentals are increasing. All of these things.

contribute to the market and where it’s going, driving up prices and things moving very quickly that all contributes to it together. So yeah, if you’re looking and tossing up your options between establish and building, and you’re not sure what to do or who to speak to book in a discovery call, let’s have a chat.

Why are your pros and cons? I can help you to talk through the options between. building and buying, and also understanding on what’s going to work best for you. You know, how long have you been looking at the established market? If you’re looking at the established market and you’ve just spent six months looking, you’ll be six months into the building process by that point.

So, you know, everyone says building takes so long. At the moment, the established market is also taking long. You’re paying a premium price to get a house. Now and you’re paying a premium price to beat everyone else to get that offer accepted and it’s a seller’s market So your terms and conditions on your offer?

It needs to be favorable to the seller if you’re looking at putting in an offer an established house You need to make your offer Look good for the seller and I had to do the same thing for the place that I just bought now, you know I needed to make sure my, the condition, what does the seller want, when does the seller want to settle, how much money does the seller want for the house, you know, and I did the same thing.

I put in a little bit extra because I wanted that place. So I put in slightly extra to get it over the line, especially because mine was subject to sale, which is less favorable than cash and finance. You want to know what does the seller want and they need to be in your terms to make it work for the established market.

And it was the same for me when the buyer for my house, you know, what, what did I want? Well, these are my conditions and I need it to settle on the same day. And this needs to happen because I’m moving into a new place and blah, blah, blah, blah, blah. So those things need to be considered as well because it is a seller’s market and it makes it tough for buyers.

Those things, I kind of went on a little tangent there, but those are the things that you need to consider getting into the established market too. So yeah, if you need some help and you want to talk it out and you’re not quite sure, blocks, different options, builders, establish, buying, what’s happening at the market at the moment, why is it like this?

You know, the RBA just held the cash rate for this month, which is great. So the interest rates are staying the same. So that’s good news. So it’s not affecting anyone’s borrowing capacity and things like that, because when you, um, RBA and interest rates increase your borrowing capacity drops. So a lot of people at the moment are struggling to get in the market with those lower end budgets because their borrowing capacities dropped so much over the last 18 months.

At the moment, time is money. I know I’ve spoken this in about another episode, but time is money. You know, when you’re waiting, prices are going up, house prices, build prices, land prices, interest rates are changing, borrowing capacity is dropping, stock and availability is going. So time is money, and that’s why you have to make those efficient and effective decisions.

I’ve gotten a little bit tangent on a few topics today, but hopefully that gives you a bit of an idea. If you want to have a chat, book in a discovery call in the show notes below. And I’ll see you next time. Thank you so much for tuning in to the home building like a boss podcast. I hope you enjoyed today’s episode and learn something new.

Remember, you’ve got this and I’ve got your back until next time. Stay inspired, stay informed and stay confident on your building journey. I can’t wait to chat with you on the next episode. Don’t forget to check out the show notes for more information and free resources. If you haven’t already. Hit that subscribe button so you never miss an episode of the Home Building Like a Boss podcast.