What is the Right Time to Sell in 2022?

The January to June period of 2022 will be a little bit out of the ordinary as a number of calendar events in Australia will be impacting market activity.
These events include the Easter long weekend (April 15-18) and the school holidays (April 11-15). In addition, Anzac Day falls on a Monday in 2022, so that would also be another long weekend. However, the most impactful one is the federal elections, which will happen on May 21 2022.

So right now, the month or so prior to an election is usually quiet in the property market. For this year, it seems that this period has begun as the school holidays start. This means it may affect some activity for a few weeks.

This year, there will likely be a “wait and see” for buyers and sellers due to the lack of predictability about who will win in the elections. While there is nothing definite on whether investment taxes or anything property-related will be included in the agenda, it will be a tight race. This means a degree of uncertainty that will compel some buyers and sellers to wait until the election is over before making a move.

If you’re not already on the market and don’t want to list right now, then use the time wisely by ensuring your property will be well prepared to stand out amongst all the other listings that are holding off and will launch with you.  This will be your competition and you want to be better than them.

Regardless of who wins in the election, there will be no change in the interest rate, inflation is expected to continue to increase and long-term pandemic-influenced trends will continue, such as sea-changing and/or upgrading to bigger homes because of the work-from-home setup. This is expected to preserve high buyer demand throughout 2022.

However, life remains unpredictable because of Covid-19. Will another strain appear in the latter part of the year? Not even the medical experts know. This creates a potential benefit from selling sooner rather than later, due to a degree of certainty around two issues concerning market conditions:
Omicron and hospitalization cases are on the decline. That’s one of the reasons for opening international borders to foreign visitors effective February 21.
Market momentum in Newcastle, Lake Macquarie and the Lower Hunter Regions are still robust at present, especially for the AAA listings – the ones with no work to be done, presented beautifully, often staged and marketed really well by an experienced agent who also knows how to negotiate too.

Supply is still building. More sellers who paused in 2021 to get the most out of their capital gains are listing now. Vendors could experience stronger competition from other properties in the latter part of the year, if supply continues to increase. Especially if they are holding off now due to the elections, holidays and pending interest rate increases and come to the market later.

But just beware, timing the market is very complex and you should buy and sell when it suits you personally!

Why Autumn is a Great Time To Sell


Spring is usually suggested the best time of the year to sell property. However for the past 10 years our office finds that the most and best sales are in Autumn and usually coincides with Easter.

Let me explain why.

Timing
By the time Autumn approaches, most people are over the disruption of Christmas, New Year, holidays and getting the kids back to school. Autumn also occurs just before the end of the financial year around Easter. This can prod buyers into looking and preparing for tax concessions and Easter provides some time off work and normal routines to make this happen.

Hot Buyers
Unlike Spring, where open homes can attract curious people wanting to get out into the warmer weather, Autumn attracts a more serious buyer who is focused on a result rather than just filling in time. These buyers have have made the time to research, plan, budget and strategise and are focused on the result.

Less Competitors
Most sellers still believe that Spring is the best time to sell and as a result the market is usually flooded from September onwards which leads to an oversupply of properties resulting in a buyers’ market. So when Autumn rocks around, things tend to settle. With fewer properties on the market this drives buyer competitiveness, maximising the seller’s chance of achieving the best sale price possible. Which is why we strongly recommend selling in Autumn.

Beautiful Weather
Autumn in Newcastle is sensational. Not too hot and not too cold. An ideal time for selling. Your buyers will feel comfortable and feel confident that they won’t have to fight the elements.

Street Appeal
Think about how nature looks and feels in Autumn. The trees are changing colours, and most gardeners are aware that plants are now preparing for winter, becoming dormant and so it’s the perfect time to tidy up the garden with little ongoing maintenance.

Get Ready for an Autumn Sale
An Autumn sale means there will be less maintenance for your weekly open homes oter than raking or blowing fallen leaves. Once you’ve prepared your property for the launch, keeping it tidy is less work for the sellers. The grass and gardens grow slower, there’s not as much rainfall to dirty the windows either. When it comes to the interior, it should be impeccably clean and decluttered with the light on and the blinds and windows open. But also think about bringing in some seasonal accessories like throws, cushions and layering your bed to make buyers feel welcomed and at home.

Don’t Let the Holidays Put You Off
Whilst many potential buyers could leave town for Easter, don’t let this stop you from launching. In fact, it gives you the opportunity to go away too and leave the house beautifully presented for your agent and when buyers are on holidays it gives them more time to find your property online and contact the agent.

Determine if Autumn is Right for You
We know Autumn is the best season to sell but deciding to come to the market will depend on the property, its surroundings and location too. For example, if your home looses light and becomes dark and cold due to it proximity to a large building, tree or hills then Autumn may not be the right time for you to sell. Or you may have to adapt a strategy of opening the mornings only.

The best strategy when selling is to use an experienced real estate agent who identifies and understands your particular situation. At One Agency Pinkerton Properties you are not only getting an experienced agent, you are also getting the owner of the business.

Contact me today to learn more and book an obligation-free property appraisal.

Home Selling Tips: How to Set a Sale Price

With an ever changing market and a huge amount of money involved, setting a home sale price seems quite daunting. After all is said and done, the key to pricing involves supply and demand.

Sellers often set their price based on the amount they need to repay debts or purchase a new home. In reality, the price calculated this way has no relation to the property’s actual market value.

Sellers also compare their home to nearby homes to get a price, but personal bias gets in the way.

Most sellers invite three real estate agents, looking for three valuations on their property. They are, in reality, getting three pitches for business.

A reliable agent, with local area knowledge, will work with the sellers to determine a fair price, taking into account all the pertinent market forces.

It is your agent’s task to research and get familiar with the local market, as well as know the seller’s expectations, to set a reasonable price, with a cooperative seller and a cooperative buyer.

Vendors can also spend a few hundred dollars to get a sworn valuation from a reputable valuer. A basic valuation costs less than a building inspection.

Things to consider when setting the price:

When setting a sale price, there are several factors that need to be considered. What you need to do is get ready and do your research.

1. Check the listings in your area

Find out what is happening in your area, so you can get a good indication of the present market trends.
First thing is to check out the property listings in the same neighborhood as you. Pay attention to homes that have been listed over the past six months or so.
When looking at listings, compare the original listing prices with the final sale prices. This will provide you data on any price cuts and the supply and demand in the area.

2. Compare the same properties
Comparing a one-bedroom home when you live in a three-bedroom will serve no purpose. Focus on properties that are the same as yours. One good example is areas that compare in square footage within a 10% variance up and down.

3. Look at expired and withdrawn listings as well
Including expired and withdrawn listings in your considerations will give you a picture of what’s happening in the market.
This will give you information if any listing were pulled from the market and resisted and reveal any difference in listing sale prices. This should give you more understanding of what is happening and guide you with the appropriate sale price.

4. How to compute the value of your home
When all your research is done and have gathered all pertinent information, it is time to make your computation.
If, for example, you have found three or four comparable homes in your area, get the average to give you an idea of how much you can reasonably ask for your home.

At this point, it’s a good idea to seek guidance from experts – you might want to add or deduct 10% of this average to be competitive in the market and ensure a fast sale, or try your luck and target the highest possible price you can get.

Has the Demand for Houses During the Pandemic Widened the Gap between Unit Prices?

The record real estate boom in 2021 saw prices increase nearly in all regions in Australia and while units were not excluded from the booming market, it’s the prices of houses that were mind blowing.

In a span of just 12 months, house median prices soared by $214,250, exceeding $1 million.

Unit prices also increased but not as much – by $44,317 in the 12 months to December 2021.

It has been quite challenging, especially in capital cities, where the price difference between units and houses has significantly widened since the pandemic started. The swift rush of buyers for homes with bigger spaces led to demand for houses picking up and prices climbing sharply while demand for units weakened.

This is quite obvious in Sydney, where the price gap between the median prices of units and houses has increased from $400,000 in December 2019 – pre-Covid – to $799,000 in December 2021.

Currently, the price of a house is double that of a unit. In some Sydney suburbs, like Strathfield, Collaroy, etc., the price difference between houses and units reaches millions of dollars.

Forster

There is a 2.3%, or $15,000, price gap between the median price of units and houses. This is because the suburb’s coastal location makes its property market diverse.

A homebuyer with a budget of $850,000 could get either a unit or a house. You can purchase both for the same price, but they both won’t be located by the water.

A significant portion of the apartment market in Forster is influenced by location. Because it is a high tourism area, it has many apartment blocks on the waterfront or near the water, which drives up the average unit prices higher. Thus, you can purchase a house for the same price as a unit but the house will not be in the same area as the unit.

Plenty of the areas in NSW where the price gap is smaller between units and houses are in the coast, including Ballina, Yamba, Terrigal and Tweed Heads South, which all had differences of less than 30%.

Like Forster, the median apartment prices in these locations are likely to be higher due to a greater concentration of units near to the beach.

We see this in Newcastle too where there is a high concentration of units near our beaches and harbour!