If you’re thinking of selling, timing can be everything. We look at some of the current market trends, research findings and insights that are worth keeping in mind when you’re planning your next property move.
Is there really a housing supply shortage?
While there are a number of factors that will impact your sales success, much will depend on supply and demand in the city or suburb where your property is located. There are differing opinions about Australia’s housing shortage and its impact on property values.
Some commentators, including the Reserve Bank, believe that some capital cities – Melbourne and Brisbane in particular– are heading to an oversupply of apartments. If you’re planning on selling an apartment in these cities, that could mean you’ll be competing in a market with many newer, competitively priced apartments.
On the other hand, research from the ANZ recently found that the national housing shortage stands at about 250,000 dwellings. Despite these differing perspectives, a news article from the ABC opined that “The Australian housing shortage is a gospel truth from everyone. From policy makers to your average Joe chatting with mates at a weekend barbeque.”
To make an informed decision about selling, it’s important to understand the current conditions in your market, as well as the bigger picture of the national economy and the challenges most Australians face. Overall, it seems commentators agree that the so-called housing ‘crisis’ is largely due to constrained supply and strong demand.
Countering the argument of undersupply, major cities Melbourne and Sydney are seeing new developments on city fringes. But do new suburban developments have an impact on prices elsewhere in a city? Do they help or hinder your chances of a successful sale? Economics Correspondent, Adam Creighton believes that “If dwelling stock in premium locations remains fixed, prices will continue to rise.”
A move in the right direction
Four Corners, an ABC current affairs program, recently provided some sobering figures about housing prices. “A few decades ago, the price of a house was three or four times the family’s gross annual income. Now it is 10, 20 or even 30 times annual income”.
If you’re thinking about selling then you’re probably thinking about your next move too. It’s essential to keep in mind that you’ll be buying back in the same inflated market. You’ll want to be confident that you can afford to buy where you actually want to live. And don’t forget the expenses and fees that come with buying and selling, including capital gains tax and stamp duty.
There is some good news for homeowners, renters and home-seekers as they think about their next move as The Reserve Bank of Australia continues to keep official rates low and steady.
Could moving into a new market be a good move for you?
According to the REA Group Property Demand Index, demand for properties is generally high across Australia, while NSW and Tasmania are seeing especially high levels of demand from buyers. In contrast, demand for properties is currently lower in WA and NT, which could mean better buying opportunities
Depending on what you’re looking for, there are unprecedented levels of apartment development in Melbourne and Brisbane which could potentially see prices ease. Towns or areas within commuting distance of capitals could also be worth considering. NSW’s Central Coast, for example, is gaining popularity, especially for buyers seeking larger-sized and more affordable homes.
Of course, every postcode has a different price and prospects. If you’re considering selling, keep an eye on the housing market forecasts so you have some idea of what you might get for your property and what you might need for your next one. And as much as market conditions may influence your plans, keep in mind that lifestyle choices are just as important.
So, is 2017 the year to sell?
Deciding when to make your next move is something only you can decide. But keeping yourself informed about what’s going on in local and broader markets can be helpful in making that decision. Talk to local agents, keep an eye on housing market forecasts and make sure you have a good understanding of where your finances stand. The right decision should always come down to the lifestyle you want and the lifestyle you can afford.
Your Aussie Broker can also provide some insight into local markets and help inform your next steps.
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