Despite rising interest rates and a softening property market, we’re seeing a huge buyer demand and strong results for sellers due to the historically low volumes of homes currently available for sale.
While the current climate may not offer the same once-in-a-lifetime opportunities seen during the pandemic, it’s not all doom and gloom for those considering listing their property this year.
Here’s 9 things you might not know about the current property market:
1. This year marks a return to a more sustainable property market
Despite what’s being reported in the media, there’s currently a balanced property market in which prices are stable because there are more buyers than properties currently available for sale.
These property market conditions reflect a return to normality. In Sydney, the market has stabilised even further with a price increase of 1.9% since December last year.
2. Demand for homes is mostly higher than it was pre-pandemic
Recent data shows that there has been an increase of 38% in the number of buyers in Sydney compared to the number of buyers before the pandemic (Jan ’20 vs Jan ’23).
3. What’s being reported in the news is not an accurate reflection of reality
Don’t just believe everything you see on the front page. Go out and see it for yourself that the property market is dramatically undersupplied – there’s historically low levels of homes currently available for sale, especially free standing houses.
4. Interest rate rises aren’t stopping most buyers
The interest rate rises aren’t deterring most buyers, they’re just adjusting their expectations and acknowledging the impact of the rate rises.
There’s still a large group of buyers looking to make their next move and it’s superseding what’s available in the market.
5. Buyers are under time pressure to purchase
Due to the low stock levels, buyers are concentrating on what’s available now and the environment of rising rates actually adds a time-pressure element to buyer behaviour.
Buyers are acutely aware that each time there’s an interest rate rise that their borrowing capacity is reduced.
6. Tight rental market has pushed many into buying sooner
The rental market is facing a significant shortage and increasing prices. This is leading many people to consider buying a home sooner and has resulted in a strong demand for affordable housing.
7. Quality homes are selling for a premium
Buyers prefer properties that are move-in ready, well-presented, and well-styled. Turnkey homes are getting above-market results because of their appealing presentation.
8. A good agent’s job starts well before your home goes to market
A good real estate agent should help you to prepare your home for sale and not just sell your home.
Sellers need to make sure they have a real estate agent that can help get a property ready for sale properly – by providing insightful advice, managing the whole process by putting sellers in touch with trusted local tradespeople for anything that needs to be done before a property is listed to ensure you present your property in the best light.
The presentation of your home is critical in today’s property market.
9. Waiting for the ‘perfect’ time to sell?
Sellers need to concentrate on controlling what they can control. There are no shortcuts in this market. If you go for a full market campaign and create competition, you’ll get a great result.
The best time to sell is simply when you’re ready!
Thinking of selling your home?
Having the right real estate agent to sell your home can defy any property market conditions.
Have an obligation-free property appraisal with one of our agents and we will provide you with an estimate of the current market value of your home, including a summary of your property, recent sales of comparable properties and listing activity in your area and real-time market insights to help you make educated decisions.
Understanding how much your home is worth can help you make smarter financial decisions by knowing your net worth.
Contact us by providing your details below.
