With many real estate speculators predicting a drop in property prices off the back of the pandemic, it seemed like 2021 would be the worst possible year for the housing market. As we settle into 2021, the real estate sector has very much rebounded, and it’s shaping up to be a great time to sell property. In fact, CoreLogic’s monthly home value index rose 2.8% in March – which is the biggest monthly growth since October 1988 – and the upward trajectory looks set to continue. Consumer confidence is on the rise as COVID-related restrictions lift, and it appears that many economic forecasts turned out to be overly pessimistic. So, while 2021 is so far proving to be a favourable time to get your home on the market, it always pays to do your homework. Here are some tips to help you weigh up if now is the right time for you to sell.
Interest rates are at an all-time low.
Buyer demand is being spurred by record low interest rates. These low rates are increasing buyers borrowing capacity and encouraging first home seekers to jump on the property ladder. Whether you believe mortgage rates are stable (or set to rise like some experts are predicting), as long as you’re selling and buying in relative succession, you’ll reap the benefits of low interest rates on any new purchases.
Realising a lifestyle dream.
Off the back of the pandemic, many of us have taken on a fresh perspective of what’s important. Do you need to be located so close to the city? Is having that enviable city pad really making your family happy? If the sea breeze and country air are calling, flexible working arrangements now mean it’s no longer a dream that’s on hold until retirement. 2021 is a great time to realise that lifestyle dream, cash in on an urban abode and move to the coast or country. For more on whether a change is right for you, head to our blog on the topic here.
Location, location, location.
With international migration on hold, inner city real estate has lost some ground in favour of regional and suburban sales. Regional Australia has experienced market growth stronger than ever before, and areas that are only a few hours’ drive from major capital cities (like the Gold Coast, Wollongong and Newcastle) are set to thrive. Suburban areas however, top the list for the most searched locations according to realestate.com.au data. Ryde in Sydney, Melbourne’s Inner South, North Sydney and Hornsby and Warrnambool and South West have all experienced double-digit growth in demand according to the realestate.com.au search metrics.
Be mindful of holding costs.
While it can be tempting to hold on in hope of a better price, every day you keep your home creates costs associated with it. Waiting it out to get a one or two percent lift in sale price doesn’t make financial sense if your costs to hold exceed that. Consider everything from potential increases in real estate property tax, normal repair and maintenance and unexpected maintenance issues that can pop up over the course of an average year.
Demand is outstripping supply.
Supply and demand are always the controlling factors behind a marketplace, and at the moment, supply is relatively low. Advertised housing stock is currently sitting around 18% below the five-year average, and with buyers returning to the market thanks to low interest rates and increased confidence, demand is currently outstripping supply. In fact, currently for every new listing added, 1.1 homes are sold – so competition is fierce!
Overall, 2021 is a fantastic time to capitalise on the strong market conditions if the time is also right for you personally. With such low interest rates, we’re experiencing what might just be a historic opportunity to potentially save thousands on your mortgage. It’s hard to say how long the current environment will stick around, which is why acting quickly is crucial! If the process of selling seems daunting, hop on over to our First Time Sellers Guide here, and then get in touch when you’re ready.
At First National Real Estate we have over 300 offices located in every part of Australia, so we know that every location is different and so are your individual circumstances. Don’t hesitate to reach out to find our local office near you to get the right advice based on your local area and individual circumstances.
The advice in this blog is general in nature and does not constitute for professional advice for the individuals’ unique circumstances. We always recommend seeking out independent advice from your trusted professional network.