It is still a few months away but the coming Spring selling season for property may turn out to be bigger than ever before.
With lockdown restrictions easing, there’s a sense of optimism that the country will feel near-normal again by September and October. That means homeowners who have put off selling their property will come rushing into the market.
Please, don’t be one of them.
As an experienced real estate agent, we can see all the signs of a tsunami of supply that risks depressing prices just when most owners think they’ll be cashing in.
Why do we say this?
For a start, more than half the properties across the nation that were due to auction when COVID-19 hit were withdrawn from sale. Added to this, property listings have been down more than 30% – and worse in some areas – as homeowners decided not to risk a transaction.
Industry researcher CoreLogic estimates that in April alone there were 40 per cent fewer sales than 12 months earlier. It reports new listings were just 20,500 – half what they’ve been for every April since 2016.
Pressure for the market to transact will release at some stage, and Spring is shaping up as the likely time.
In part, that’s because owners have been conditioned by media and some agents to believe Spring is the optimum time to sell a home – with or without COVID-19. The days are warming up, the evenings are getting longer, the flowers are out and everyone’s feeling good.
The property market isn’t that romantic.
It doesn’t respond to the weather or care if you feel good; it’s only interested in supply and demand. And when supply is strong, prices typically ease.
The withdrawal of properties from the market during the lockdown has created a level of scarcity that has helped keep current prices relatively stable when many pundits were predicting off-the-cliff falls.
Of course, it is correct that there will be more buyers when Spring comes. But those who are confident of their employment and income status are in the market now. Spring will not necessarily see thousands more start to take an interest in buying a property.
As your agent, we recommend you consider a winter campaign for your property now.
You will tap into the advantage of a much quieter market where scarcity has stabilised prices to a degree but not scared buyers away.
Buyers are enjoying interest rates of just 3.5%, investors see property as a haven, and the low value of our dollar has caught the interest of many overseas buyers.
If you’re trying to figure out the best time for you to sell your home, speak with our experienced agents. We’ll give you a down-to-earth assessment of the market, describe buyer attitudes specific to our area and the types of property they’re seeking.
It never hurts to ask, and it could save you thousands of dollars that would be lost in an over-supplied market.
