"Be greedy when people are fearful and be fearful when people are greedy".

Warren Buffet is arguably the most successful investor of all time and one of the richest men in the world. He has a simple formula when it comes to assets which includes property - "Be greedy when people are fearful and be fearful when people are greedy".

Throughout 2021 we have seen a red hot property market.

We have watched as buyers experienced what is now known as FOMO - fear of missing out, we have also seen buyers in large numbers purchase sight unseen and for incredible prices due to high levels of buyer competition. These prices have almost always been record prices, well above the vendors expectations and usually achieved in record time.

Whilst predicting the peak of the market is fraught with danger, Warren Buffet's simple formula is one worth considering at this point in time.

This month we have witnessed a consistent increase in negative news stories about the property market. The headlines include concerns over higher inflation, higher interest rates, affordability issues, limited wage growth and now lowering consumer confidence when it comes to the housing market.

Further to this, the ANZ Bank this week released a report stating that "more homes on the market for sale, reduced affordability and rising fixed mortgage rates are the main reason the property boom will end"

A follow up report released by realestate.com.au suggested that just 35% of people believe that now is a good time to buy, down from 67% a few months ago.

This information all coincides with a growing list of economists proclaiming that not only will price growth slow significantly in 2022, price falls for many markets are also a distinct possibility.

This is a challenging time for both sellers and buyers due to the fact that when a market turns it does so quickly and rarely does anyone realize the swing in momentum until it is too late.

What we do know with certainty is that January will see an incredible increase in new listings on the Gold Coast. We can all sense it and the media have also picked up on the fact that the critically low stock levels that we have experienced all year are now beginning to ease.

As a business we are on track to list sixty new properties this month which is almost double our 2021 average, and from all reports we are not alone.

In good news for sellers, there is little doubt that we will have a surge in buyer activity once interstate borders open up, but how long will this activity last ?

It is interesting to note that for two weeks following on from the end of the Sydney & Melbourne lockdowns, their property markets ran hot. These markets are now softening as FOMO buyers purchase whilst more and more properties come to market.

According to Domain.com.au, outside of the lockdown's, yesterday's Melbourne auction clearance rate fell below 70% for the first time this year - in yet another sign of what may lie ahead for us.

So what will happen here on the Gold Coast?

Clearly, no one knows the answer to that question but if we can learn anything from previous cycles then it is this.

Sellers & agents have always focussed on January as it has traditionally been the busiest time of year for real estate activity on the Gold Coast. One wonders whether this year we need to re-evaluate.

If a seller wants to take advantage of the current market and list whilst there is incredible competition amongst buyers, we know they have that opportunity now.

Up until the borders reopen in December and for at least a couple of weeks thereafter we are likely to see continued competition from buyers and strong selling activity.

Sellers will be seeking your thoughts and recommendations moving forward and it needs to be stated that the best time to list when taking into account all of the current variables in the market is between now and mid December. The information at hand demands it.

Whilst this may upset the plans of many (including ourselves) this is the most prudent course of action for our sellers.

Listing before Christmas will ensure our vendors have the best chance of selling for a premium price before a tsunami of new listings hits the market in early to mid January.

If you would like an obligation free Appraisal or you home, please call me on 0402 005 706.