There are many times in a person’s life where they may wish that they had a crystal ball, and this is undoubtedly true when looking to sell a property.
So, what are the positives about selling in the current market? If you listen to the doom and gloom presented in much of the media, you’d say they were none, but on the contrary, we believe there are a number of them.
Here we outline three:
- Current stock levels continue to be low, with Metropole Property Strategists reporting that at the end of February, the number of properties on the market was almost 4% below the five-year average; this has helped protect against deeper price falls than we have observed. Throughout 2023, we will see the fixed rate mortgages of many homeowners’ end, forcing them to make the decision to sign to new fixed rates that will be substantially higher than those they have come off, or to convert to current variable rates. Either of these options will push up their monthly outgoings significantly which will cause mortgage stress for a number of these parties. Sadly, this will see some owners forced to sell their homes, in turn creating a higher volume of properties on the market, and in turn, less competition and potentially lower prices. As such, if you are looking to sell, doing so in a market like this, with lower stock levels and a higher rate of competition that we are currently seeing, is beneficial.
- A market with softening house prices is favourable for those wanting to upsize their home, as the gap between the home they’re selling and the one they are buying is likely to be less. Stamp duty and lower agent fees (if working on a fixed %) will also be less, so these too will contribute to further savings. This makes the task of upsizing more achievable for some buyers now than what it would have been at the peak of the upturn in December 2021.
- If you are selling a home that will appeal to investors, this could be the perfect time to attract good interest and a pleasing price. At the end of February, Domain reported that Melbourne’s vacancy rate had fallen to 0.8% which is a record low, with rental listings also down 64% annually. Combining these figures with further demands caused by immigration, it’s the ideal time for those looking to invest to dip their toes back into the market, and as such for those with suitable properties to consider capitalising on this.
When weighing up your decision about the timing of your property sale, there are many factors that need to be considered, none more so than your own personal circumstances, including why you need to sell, and the level of urgency behind this. You also need to factor the current conditions within the suburb that you live in, and the kind of property you’ll be taking to market. As such, it’s important to understand the specifics of your local market, and this is where your local Noel Jones agent can be a great resource, providing up to date information about the particulars of your location and property type.
If you’d like to discuss your personal needs, contact us at noeljones.com.au or call your local Noel Jones office.