There’s lots of noise out there about where the property market may be heading.
After the recent property boom, with wild increases over 20%, the market is now seeing a deceleration with many people who may have been thinking of selling asking the question – should I sell now or wait?
Timing can make a big difference when it comes to buying and selling property, so it’s important to understand what’s happening with the market in your area at the moment.
With prices slowing, and in most instances declining (with exception to SA and WA that still show current value increases), and interest rate rises impacting not only those with mortgages, but potential buyers, there is a lot to consider if you are considering selling.
Leading experts agree that the boom of recent years is behind us.
‘ANZ has revised its house price forecasts with the bank now expecting larger house price falls across the capitals during 2023 as rising mortgage rates start to bite.’
So, what does this mean for you if you are thinking of selling a property?
With some supply shortages and buyer demand still in the market, selling your home now could be wiser than waiting.
Housing price growth is slowing and it is likely prices will keep falling a little, as the RBA continues its rapid tightening cycle in order to counter inflation.
If you have benefited from gains in your property price over the last 18 months, you may want to realize these gains by putting your property on the market sooner rather than later, before prices decline further and any further interest rate rises impact prospective buyers.
Ultimately whether you sell or not in the current climate will be a personal choice.
The important thing to do, if you are considering selling in the current selling environment, is to do your homework and ensure your property is priced competitively and presented well to appeal to potential buyers. Do your research and know your property’s market value. The last thing you want is to become frustrated by believing your property is worth more than what the market is saying.
FOMO (Fear of Missing Out) has diminished amongst buyers and they have become more cautious and are taking time to make decisions. The property market is expected to remain a buyers’ market for a while, as banks continue to compete for customers, however its possible there may be fewer buyers looking to buy as we end 2022.
Buyer behaviour has also changed with many now focusing on more average-priced property, so getting your pricing right is now more important than ever before.
When a property lingers on the market and fails to sell it is generally due to an unreasonable asking price by the seller. Potential buyers will easily ignore a property that they feel is overpriced.
Remember buyers are out in the marketplace searching and comparing prices. That’s why it is so important to engage the expert assistance of a skilled Smile Elite real estate agent to do a no-obligation appraisal of your property and advise you on typical results being achieved in your area, what your home might sell for in the current market, how the local market is reacting and suggested strategies for achieving optimum results.
So, the question still remains, is it wise while prices remain near peak levels to sell, or take a wait and see approach?
Selling is always a huge decision, so always weigh up what’s best for you.
As we said earlier, that really depends on your own personal circumstances. If you own an apartment and need a house as the family has out-grown your home, it’s a no brainer. So really, the final decision rests with you.
Before making your decision, it’s important to remember that the real estate market doesn’t stop. There are aways people to buy and properties to be sold, regardless of how the market reacts. The best house will most likely find the right buyer.
That’s real estate and there is always a constant demand. The recent boom times with accelerated prices may have created some unrealistic expectations, so it’s always wise to get the advice of an expert on what the market is doing NOW in your area.
The market is still good enough at present to achieve a better price than what may be on offer later.
Do your research, get some professional advice from the experts and then make an informed decision.
Acknowledgments: Commonwealth Bank, Andy Webb, ANZ,