Should I sell now or wait until next year? Is the market going to crash? What would you do?
These questions are being asked on a daily basis, and the answer is, if it suits your circumstances then yes! Want to move on to the next chapter in your life, then yes! Actually making the decision is the hardest part.
On a daily basis we are being inundated with so much doom and gloom about property market from the media, and of course about Covid. However if anything, our home has become even more important as we are spending so much more time in it then previously. People are now working from home and with multiple people so space has become very valued by all occupants. Ensuring that your home supports you is so important so we are finding people that have been putting off the decision to upsize or downsize are actually bringing their plans forward and making the move now.
The main question we always get asked is should I sell now? Once again it depends on your circumstances. We have always said, if you buy and sell in the same market, it doesn’t matter. We have a lot of buyers “waiting for the crash” – this has been happening for years however I feel that suppressed transaction activity means we may expect to see a build-up of latent demand and the markets will rebound in the second half of the year. Yes unemployment will rise, especially after JobKeeper finishes however the majority of owners in the Northern Districts have very good equity in their homes so the likelyhood of clearance sales in our area will be few and far between.
There are some sellers who absolutely HAVE to sell due to their personal circumstances although chances are the majority of people selling are either looking to downsize or upsize. You then of course you also have your first home buyers, and remember that no matter what the market people still buy and sell. In one of our previous blogs we discuss the advantages of upsizing in a market like we are experiencing now.
Below are some points to consider about the market we now find ourselves in:
- Recent market activity
Since bottoming out after the election in May 2019, Sydney dwelling values have recovered and are up 14.3% over the past year and Sydney home values recorded their first month on month decline in a year, with values down 0.4% in May.
Despite the fall in values, there were some more positive signs that housing markets were responding to an easing in restrictions.
Buyer activity was up by 29% over the month, partially recovering a 41% drop in activity through April, and auction clearance rates had improved from the low 30% range in mid-April to the mid 60% range by late May.
- Types of Properties
A grade properties will always do well. We just saw that with the sale of 38 Simla Rd Denistone for $1,702,000. This was a 3bed, 1bath, 1car full brick home. So what did buyers like about it?
- The beautiful tree lined street
- The location to the station (600m)
- The property is on the high side of the street
- It was a full brick home
- It was a gentle sloping block with beautiful gardens
- It was an easement free block
- It had been lovingly maintained
Quality proprieties are selling and still achieving great prices – people want quality. That being said I believe the majority of properties on the market at the moment have a lot of things wrong with them and yes these properties would have benefited by selling in 2017. These properties have also seen the biggest drops compared to quality properties. One of the reasons for this is that buyers now have choice and if you monitor the market you will see for yourself that the quality homes always sell first.
Finance is very important right now and your agent should be ensuring that prior to submitting an offer, they have asked the important question if buyers have their finance pre-approved, because if they haven’t even started the process, they will more than likely not be purchasing the property. It is taking a lot longer and they may not actually the obtain the amount they thought they would.
That being said money is super cheap – I personally just locked in a 2.29% interest rate – crazy! Especially when I was on 14.25% when I purchased my first property back in 1991!
In summary, my opinion is if you are buying and selling in the same market, then just do it. Get on with the next chapter of your life. I did it, and have never looked back. Don’t get stuck waiting, and living with what if’s, look to the future and get excited!