IF I AM CONSIDERING SELLING,
WHY SHOULD I GO TO MARKET NOW?
SUMMARY
• List now to sell in spring.
• Avoid potential risks that may arise in the market.
• Home values are protected now.
The fundamentals of the Australian housing market are
intact despite the economic upheaval caused by the
COVID-19 lockdown. The two biggest drivers of the
residential property market have been low mortgage rates
and credit growth. The state of the housing market has
been a key barometer of economic health and is keenly
watched by all levels of government and Treasury.
The property market is functioning at a high level with
very benign price adjustments if any at all.
Statements by Macquarie Group
last week reminded us of the
uncertain economic outlook.
The Australian-based global
investment bank advised it was
unable to provide “meaningful
earnings guidance at this point...
the first time since the global
financial crisis”.
The investment bank warned
current levels of government support have likely “masked”
higher unemployment and a deeper economic slump.
“We’re in a particularly uncertain time,” chief executive
Shemara Wikramanayake said last Thursday about the
difficult environment. “It’s more difficult than other times
during our history to forecast how things are going to play
out,” she said.
If Macquarie Group are unable to give earnings guidance,
how can anyone be expected to give any firm estimate
or predication as to what might happen to the real estate
market in the year ahead?
“By listing your property now,
you would most likely achieve
a sale in early September,
which historically has no
difference in median price to
sales that occur later in the
spring and early summer.”
Again, we remind our customers that as current real estate
market conditions are broadly very favourable, they can
avoid any future economic uncertainty by transacting now.
By listing your property now, you would most likely
achieve a sale in early September, which historically has
no difference in median price to sales that occur later in
the spring and early summer. The key reason to list now
is to remove as much risk as possible as to what might
happen later in the year. There
are many economists predicting
property prices will decline over
the next year or so. As mentioned
earlier there are two basic
fundamentals that drive property
prices, supply and demand.
Many suggest that supply will
outweigh demand in the next
six to 12 months and possibly
longer, creating conditions less
favourable for sellers.
What many economists are saying that the next 12
months may hold:
• JobKeeper and JobSeeker support limited;
• Mortgage deferment support extended by all the
major banks;
• Significant rise in unemployment; and
• Therefore the number of properties for sale will
increase and there may be less buyers looking to
purchase property.
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The information is general information only, not financial advice, and does not take into account your individual objectives, financial situation or needs.