It’s very possible you’ve started to see more “For Sale” signs go up around our local suburbs in the strongest signal the property market is beginning to regain its momentum.
Average sale prices increased 1.3% in the 12 weeks to the end of May as buyers double-down on their search now that interest rates have fallen almost 1% from 4.65% to 3.85% in the last six months.
Auction results are now showing a near-75% clearance rate – the highest for 12 months ago.
Predictions are coming thick and fast that Sydney and Melbourne will see values rise fastest in the next year.
Property portal Domain said Sydney would go up 7% and Melbourne 6%. The other capital cities would show growth ranging from 4%-5%, including Brisbane, Perth and Adelaide, which have had remarkable runs of value growth.
This national data is a great way to gauge market sentiment.
However, it’s the local trends that should influence your decision to buy and sell. And we’ll be happy to give you a market appraisal and Comparative Market Analysis for our area.
Despite all the positive data, many owners will still wait until spring to put their homes on the market, believing it to be the best time to sell. In reality, there’s never a bad time of year to sell.
Winter marketing campaigns have distinct advantages that may persuade you to refrain from joining sellers who’ll hit the market from September onwards.
Here are the key advantages of selling your home this winter:
Less competition: The surge of listings in spring and summer can have a detrimental effect on prices because of oversupply. This is exactly what we saw at the beginning of the year when average market values in some cities, including Sydney and Melbourne, declined.
Motivated buyers – There’s nothing more frustrating than dealing with tyre-kickers who give false hope of a deal. They appear in the warmer months. Conversely, winter sees motivated purchasers with authentic intentions.
Price potential – Less competition means you have more leverage in a negotiation. Buyers with fewer options are more likely to act quickly and pay a higher price for the right property.
Quick deals – With fewer transactions going through the banking system, you can expect a smoother, quicker settlement. When sales hit their peaks in spring and early summer, banks have been known to struggle with the volume and cause settlements to be delayed.
Next purchase – By selling in winter, you’re positioning yourself nicely for a greater selection of properties this coming spring.
Start looking – Once you’ve sold your property, we suggest you don’t delay your next purchase. Prices are moving higher, and so theoretically your next home will be less affordable.
Danger of delay – When prices move quickly, and you’ve sold your property, you do not want to sit outside the market for too long. We’ve known clients to rent for six months while they looked for their next home, only to find their spending power diminished rapidly with unfortunate results.