It’s the million-dollar question on the minds of potential vendors across NSW: Is now the right time to list?
The apprehension comes as buyers, encouraged by generous government stimuli, are scouring the market for value buys, with low stocks and a large number of house hunters fuelling competition in the marketplace.
Online search data is also signalling a greater number of buyers in the market compared to the same time last year.
In terms of selling, there are a lot of buyers out there and no matter which way we look at it, by pure search, engagement on-site or enquiry, numbers of those looking are all well up compared to the same time last year and with the stimulus being extended till next march, people are feeling confident to spend.
So should you list your home? It depends how long you plan to hold the property
Investors generally comprise about 40-50% of the market, but they have been laying low since COVID-19.
Nevertheless, those looking to sell in the short term, 1-2 years, now is the best time!
We expect the market conditions to deteriorate and prices to drop possibly 5-10% in the next six to 12 months.
SO with investors not selling and choosing to rent out, stock levels are now down 40-50% on last year.
There’s not a lot on the market and that’s really propping up prices because investors and developers have deserted the market.
It’s A Seller’s Market
Clearance rates are still hovering around 65-70% and days on market are around 28 days, which is still a reasonable market.
At the top end, we’re seeing results and at the bottom end, we’re seeing first homebuyers driving that market.
It comes down to personal circumstance
Determining if now was the right time to sell depends on personal circumstance.
A lot of people will hold off on selling when there’s not a lot of stock because they’re worried they won’t be able to buy the next property that they need to buy. So, it’s a bit of a ‘chicken and egg’ scenario that needs to be navigated.
It could be perfect timing to sell now when there’s not a lot of stock and then time your purchase for when you expect more stock, but that is a gamble.
If you’re a seller wanting to get in before stimulus packages run out at the start of next year, then potentially that’s a good decision because there’s a lot of uncertainty about what that will entail.