Is there a perfect time to sell?
As much as we’d all like to gaze into a crystal ball and pinpoint the ideal moment to sell a property, the reality is the housing market is fluid.
Like all areas of finance, it’s driven by supply and demand, economic indicators like interest rates and consumer confidence, along with other factors that are a little more localised such as suburb location, perceived value and more.
That said, there are some obvious signs when the time is right for selling, many of which are occurring throughout Australia right now. Here’s an insight into just a few…
Ease of finance
When buyers can readily obtain finance, it means the market is primed for sales. That’s occurring right now due to more relaxed lending criteria.
In addition, interest rates are low, which means prospective buyers can affordably obtain a mortgage and are better positioned to pay it down.
In the first home buyer sector in particular, there’s been increased activity as a result of government stimulus like the First Home Loan Deposit Scheme, which is seeing many properties in this entry level market quickly being snapped up.
There’s a lot of talk about housing affordability in Australia, but the reality is the value of property has traditionally been something that continues to rise over time.
Despite some areas of Sydney and Melbourne commanding high prices, many feel there is still value to be had in buying now and profiting later.
This means market conditions are generally positive at the moment, and in some areas more positive than others. City fringe suburbs continue to escalate in value, and satellite cities are also rising courtesy of more flexible remote working conditions.
Low supply, high demand
If your area is experiencing low supply and high demand, that’s a key sign the time is good for selling. You’ll tend to see this through statistics like high auction clearance rates in your area, or properties being snapped up quickly after only a little time on the market.
If sales prices rise at the same time (and often they do) it’s a surefire indicator your area is taking off. The key is to pick the moment to sell before other vendors also take advantage of prime selling conditions and the market becomes inundated with properties.
When infrastructure and employment is pending
The property market doesn’t work in isolation of the community where it’s located. Often the announcement of major infrastructure projects, new amenities or increased employment leads to fresh interest in local markets.
Say for example a hospital is announced for your area…the likelihood is that may lead to increased employment and additional people seeking accommodation.
That’s likely to then attract both owner occupiers and investors into your local market which could result in both a housing price increase and renewed demand.
When the time is right for you
As much as market conditions and economic indicators can help you decide when to sell, the truth is selling a property is both a financial and personal decision.
That means aside from what’s going on in terms of supply and demand, your personal situation might dictate the time has come to sell.
You can read more about the ‘six signs you’re ready to sell’ here, but regardless, our experienced Eview agents here to assist with local knowledge, market insight and professional advice to help guide you through the decision making process, and assist with any sale.