What a difference a day makes!

As the old saying goes, what a difference a day makes. Only a few short months ago, the global real estate market looked to have stalled with buyers and sellers preferring to take a wait-and-see attitude.

The last few months have seen a dramatic shift, particularly in the New Zealand and Australian markets, to such a degree that would-be sellers seem to have been caught off guard. And the danger buyers face as a result is a leap in prices due to the competition that pent up demand creates.

What worries me about this is that we are about to enter the Spring selling season, a time when the market traditionally is at its busiest.

A number of reliable indicators are already pointing toward the first step in the recovery of the Australian and New Zealand economies, and this has caused a lift in confidence across many sectors, including the housing market.

But the reality is that many would-be sellers were advised six months to a year ago that they should hold onto their home if they could, and ride out the global financial crises, to avoid having to accept a lower price or having their property sit on the market for months on end with very little interest.

Now the situation has changed rather quickly, and the fewer properties that are on the market are often receiving multiple offers with some selling over the asking price. This means we are facing a tight market that is being artificially constrained due to a lack of stock. I say artificially, because I believe the stock is there; it’s just that the would-be sellers are holding out for the market to turn. Trouble is, it has turned so quickly that they just haven’t noticed.

This is why now a great time to sell with competition from buyers strong. This will change just as quickly as new stock comes onto the market, buyers buy and we move back towards greater equilibrium in supply and demand.