Been patiently waiting for the perfect time to sell your property? Perhaps that time is now. As we move into the new year after a rollercoaster twelve months, interest rate shock has worn off, the rate of property value decline has steadied and the number of available listings is lower than ever. Combined, these three factors indicate it could be a great time to list and sell your property. Let’s take a closer look.
1. Interest rate shock has worn off
After nine consecutive rate rises, the Reserve Bank of Australia lifted the cash rate for the tenth time in March. Almost a year into the rate rise cycle, while we’re collectively ready for the hikes to end, it is safe to say by this point, the shock has worn off. The official cash rate currently stands at 3.60 percent as of March 2023, and it’s likely not the last of the hikes.
From a consumer confidence point of view, we’re in a far better position than we were six months ago when the reality of these rate rises was initially sinking in. Expectations have been adjusted, borrowing capacity has been recalculated and buyers are more realistic about both what they can afford and what they are willing to spend. As such, they’re no longer holding back and are increasingly willing to do what it takes to secure their dream property.
2. Listing volume is lower than ever
The number of new listings on the market is continually declining. According to Core Logic data, the flow of new listings is well below average for this time of the year. New capital city listings added to the market over the four weeks ending January 29 were -22.2% lower than over the same period last year and -24.5% below the previous five-year average.
On the demand side, there are absolutely buyers out there. This incredibly tight supply, coupled with moderate buyer demand ultimately tips the market in favour of sellers. The reluctance of many prospective vendors to test the market means those in a position to sell, will reap the benefits of being one of a limited number of properties available for sale.
3. Property price declines have steadied
The declining trend in house price value points has evidently reduced in pace across all regions and capital cities. January saw national home values decline -1.0%, which is less than the -1.1% fall in December, and below the peak monthly decline (-1.6%) recorded in August. In other words: we’ve made it through the eye of the storm.
If you’re serious about selling, perhaps what’s most important to note is that despite the recent sharp drop in values, every capital city and region is recording home values above pre-pandemic levels.
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