When selling your home, there are a number of controllable factors which can positively influence your sale price, such as cleaning, maintenance and good marketing. However, sometimes people forget that other market conditions can have a significant impact on the final sale price.
With an economy in a growth phase, wages and income often increase and so more people can afford to buy property – this increases overall demand which also means prices will rise. If demand for property increases faster than the supply can meet those demands, then house prices will go up. In general, for house prices to fall the demand also needs to fall.
In a situation where interest rates are rising, the cost of variable mortgage repayments go up. With higher interest rates, buying property becomes less feasible. Variable mortgages are very common throughout Australia so even small changes in interest rates will have a significant impact on affordability and purchasing power.
Market conditions and buyer demand have a significant impact on the same of your home and the price you will sell for. A professional located in your area will have intimate knowledge of the current conditions and knows whether the market is hot, cold, or neutral.
A “buyer’s market” is classified as a market where more people are selling homes than there are willing buyers to purchase the properties. In contrast, a “seller’s market” occurs at a time when there are more buyers looking for particular properties than there are properties available to them. A “neutral market” usually exists in a scenario where affordable interest rates create an even balance between buyers and sellers with no particular favour to either.
Seasons of the Year
It is worth considering the influence that seasonal factors have on the property market. Of course, it’s possible to create favourable sale conditions at any time of the year, but it’s good to be aware of such influences.
Winter (June – August)
Winter can be a trickier time to meet the demands of buyers as prospective homeowners are doing more research whilst spending time indoors during the cooler months. In addition, buyers also have the opportunity to evaluate your property in poorer weather; judging how the property is impacted by heavy wind, rain and other winter weather conditions. Many sellers also hold out for warmer weather to coordinate their own moves, so this can be a quieter time.
Spring (September – November)
Each year there is a marked increase in activity in the property market as spring comes around. The momentum is there for people to look for new opportunities and there are generally a lot of properties coming up for sale. The market can quickly get flooded with options and this can have the effect of driving prices up.
Summer (December – February)
The warmer months usually attract a wealth of buyers as it’s school holiday time and many people are happy to be out and about in the fair weather. There is an advantage, especially for those selling a family home, as children are more likely to be with their parents at inspection times… and who can resist picturing a happy family playing in their potential new backyard?
Autumn (March – May)
After the buying peak of summer, there are still plenty of buyers who are ready to move. People are often looking to close a deal at this point of the year so this can work to a seller’s advantage.
If you’re considering selling or would simply like to know what your home is worth in current property market conditions, get in touch with Anthony Oddo on 0430 028 254 or email [email protected].