IF I AM CONSIDERING SELLING , WHY SHOULD I GO TO MARKET NOW ?
SUMMARY
• Market is in a sweet spot now .
Many of our customers want to know what ’ s happening in the Australian property market now . While we work in the now and use our real time market , we know there are many risks to the economy in the future . We still believe now is a good time to come to the market .
The late season surge is running right up to at least the final weekend before Christmas – about 2,300 auctions are expected this week . The clearance rates have held despite the gigantic increase in volumes . That does indicate the buyers are out in force . Many sellers are trying to wrap up their affairs before Christmas and hitting the market hard . That current appetite is pushing up prices as well . Property prices rose across all capital cities last month , for the first time since January . CoreLogic believes the full recovery in values , diminished during the COVID-19 downturn , could come as early as February .
The federal government sees housing as an asset class too big to fall and will likely extend the JobKeeper supplement again next year to shore up the market , leading to price gains of up to nine per cent in 2021 , according to some property analysts . The most likely scenario next year is that the government extends JobKeeper for another six months to September to prevent distressed sales by owners , leading to gains of up to 12 per cent in Perth , 11 per cent in Sydney and 10 per cent in Adelaide . The dilemma for political leaders is that while a sharp housing correction would open up home ownership more widely , particularly to younger and first-time buyers , it could arouse hostility among the wider pool of existing owners for whom the home is their largest asset .
Reserve Bank of Australia findings last month showed JobKeeper had saved an estimated 700,000 jobs and some analysts believe that to end the payment in March as planned would weaken housing in most cities , except Perth and Canberra , where a price gain of up to nine per cent is forecast .
So this year ’ s selling season is being extended with new listings continually being added to the market and auctions being booked right up to Christmas eve . Demand has been strongest from first-time buyers and upgraders , many of whom are spending money on a house they might otherwise have used on overseas holidays , which have been stopped because of COVID-19 .
As always we remind you that the future remains uncertain for many reasons :
• JobKeeper and JobSeeker support winding back by March ;
• International borders remain shut ;
• Unemployment tipped to rise ; and
• The number of properties for sale will increase and create more choice for buyers .
What we do know is market fundamentals right now are helping our clients who are looking to sell . Our data tells us that our auction clearance rates are the strongest they have been since March and we call one in three auctions nationally . So there ’ s a deep buyer pool for sellers to take advantage of right now . Our question is , “ What are you waiting for ?”
8 The information is general information only , not financial advice , and does not take into account your individual objectives , financial situation or needs .