If you’re a homeowner, you may be wondering whether now is a good time to sell your property. With the current state of the real estate market, it may seem counterintuitive to consider selling. However, there are some compelling reasons why now could be the right time to make a move.
With interest rates on the rise, many Australians are starting to feel the financial pressure. The recent rate hike by the Reserve Bank of Australia (RBA) is the tenth in a row, adding significant monthly repayments to variable rate loans. But, according to Domain Home Loans data, about 35% of Aussie borrowers on fixed-rate contracts have been shielded from the rate hikes.
However, as three-quarters of homeowners on fixed rates roll off the stability of those deals and into a variable rate environment by the end of the year, they will freshly feel the financial burden. Another two to three interest rate increases are predicted, and the true impact of this tenth rise is yet to be seen. Borrowing power has been reduced by higher interest rates, which has dragged house prices backwards.
So, with all this uncertainty and fear around interest rates, is now the time to sell?
If you’re a homeowner and considering upsizing your home, it may seem counterintuitive to sell during a down market. However, it may actually be a good time to sell. During a market downturn, the cost to upsize your home may be less because the value of your current home and the more expensive home you want to buy are likely to both decrease by a similar percentage. Additionally, you may also pay less in stamp duty, which can lower the overall cost of the move. This can make the financial burden of upsizing more manageable, and may be a good opportunity to move up the property ladder.
Low supply of listings compared to the same time last year has made auctions and private negotiations competitive, which has put a floor under prices. Real estate has not become as cheap as some buyers might have hoped. However, the proportion of properties nationally that are selling before auction day is at its highest since April last year, indicating that “nervous” vendors and bullish buyers are meeting in the middle.
But there is a risk that if vendors wait until later in the year to sell, an influx of properties may come onto the market, causing prices to fall. According to Ray White economist Nerida Conisbee, auction activity is still strong despite the rolling financial pressures. Participation is near to what it was before interest rates started lifting last year.
It’s important to remember that the decision to sell should not be taken lightly. There are several factors to consider, including your financial position, the current state of the property market, and your personal circumstances. It’s important to seek professional advice before making any decisions.
In conclusion, with interest rates on the rise, now may be the time to sell if you want to upsize. The market is trending down, and the changeover cost is likely to be less. However, it’s important to consider all factors before making any decisions. With professional advice and careful consideration, you can make an informed decision that’s right for you.
Let CampaignFlow help you fund your sale.
We understand that home renovations may seem like a daunting process as it involves investment and much larger risk. However, with the right styling, marketing and advertising, you can also attract more competition and can make a significant difference to the final result of your sale. However, the upfront investment costs of this may seem intimidating.
CampaignFlow empowers your Agent to showcase your home in the most appealing way possible while taking the burden of upfront marketing costs off your shoulders.
To learn more about CampaignFlow, you can contact us here – we can discuss your options and provide more information about preparing to sell.
Data referenced from the following Domain article.
Did you find this topic interesting?
We’d love to hear your thoughts!
The team at Campaign Flow work alongside forward-thinking agents like you to help you get your Vendor the best outcome when selling.
If you have ideas for future topics for us to write about, contact us at firstname.lastname@example.org.
If you like this content please follow us on our socials…
National Sales Manager
Property FinTech Sales Manager ||
Empowering our real estate partners to maximise their selling potential.
Ensuring access to quality marketing to all property vendors and solving cash flow issues within real estate businesses.
To connect with Nathan, click the LinkedIn icon below.