The demand for property is currently far higher than the supply which is heavily skewing the market towards sellers. This is supported by a stable economy and solid jobs market as well as historically low-interest rates that appear locked in for at least the medium-term. In addition, there’s an array of government subsidy and stamp duty discounts for first-time buyers. We compiled a list of selling tips to guide you through this step.
The latest figures indicate that the national stock of homes for sale is 28.5% lower this year than the five-year average. Over the same timeframe, new listings are down 12.9%. That is a tight supply.
As a result, seller discounts are almost non-existent. They average just 3% nationally and 2.7% in the state capitals, according to the latest data from CoreLogic.
Auction clearance rates are at their highest since early 2017. On average we are seeing homes selling one week faster than they were a year ago.
Generally, this means it is a great time to sell. However, real estate is complicated on more than one level, so it is important you thoroughly consider your steps rather than rushing in on a perceived trend.
Here are some key tips for selling in a strong market:
Selling Tips #1: Location, Location, Location
It’s easy to think that the national property market is booming and therefore, all markets within are booming – this is not the case. The market is made up of thousands of ‘micro-markets’, all with different growth or depreciation trends. It is important that you know your suburb and how houses are performing. If you would like to have a chat about your home and the strength of the market in your suburb, we’d be happy to help!
Selling Tips #2: Trending Facade
While all boats float in a high tide, its important to consider how buyers feel about your house style. This demand can change suburb to suburb. So, if you are selling an older property in a suburb of new builds and renovated houses you may not see the return you’d hoped because the demand for your property may not be as high in that area. But on the other hand, if you’re selling a large family home in a very built-up area, you may see huge dividends.
Selling Tips #3: In and Out
If you are selling in a hot market, chances are you will be buying in the same or similar market. So, it’s important that you assess your situation and options very carefully. If you are daunted by the idea of buying in an upward market, it may be a good idea to investigate options such as renting, moving to a different suburb or property style, or even consider a sea or tree change. These can ensure you truly cash in on the benefit of the higher price in your original suburb.
Selling Tips #4: Supply and Demand
While everything points towards us being in a seller’s market, this can change quite quickly. Changes in interest rates, employment rates, or even the calling of an election can shift the market, so it pays to remain vigilant. We are heading into winter which in real estate is typically a time for a reduction of homes on the market. This means we can probably expect strong prices off the back of low supply over the next few months.
Selling Tips #5: You are in Control
No matter the state of the market, the most important factor to take into consideration when purchasing a property are your own personal life goals and the way property impacts them. Lifestyle desires should always be an important influence when it comes time to sell, not identifying a hot market and selling for the sake of selling. If it feels like the right time to you, then get into the market.
Calibre Real Estate
If you have any property management or sales needs or would just like some general advice on the state of the market in your area, please do not hesitate to reach out, and we will do our best to assist you!
