Should I sell now or should I wait?
Because of the COVID-19 environment, this is currently the number one question asked by property owners. The answer to this question is simple. It depends! It depends on your circumstances, your location and the type of property you have.
When I say it depends…there are several things to consider. Do you need to sell? To whom is your property best suited? Where is your home located? What is the current trend in your suburb? Most importantly, will the sale improve your life?
Let’s have a look at these questions in a bit more detail and hopefully we can guide you in the right direction so you can make a more informed decision.
Do you need to sell?
If you need to sell then you need to sell and regardless of the market conditions your home will sell if it is priced correctly. You should be able to discern a clear and positive reason why you will benefit from this sale. For example, you might be selling to upgrade or downsize. You might be looking to reduce financial pressure or perhaps to move to a retirement village. In all of these cases your life should improve once you make the move. If you would like some information regarding the sale of your property – How to sell for the highest price.
To whom is your property best suited?
If you own a stand alone home you will have no problem selling in this current climate and you should expect a good price as there are many first home & owner occupier buyers in the market at the moment. Interest rates are super low and if the buyer’s employment has not been affected by COVID-19 they are a shoo-in with the banks.
On the other hand if your property is more suited to the investor buyer, for example, a duplex or a home with a long lease in place you will find it a little more difficult…not impossible but certainly more difficult as buying an investment property in this current COVID-19 environment is a discretionary purchase. So, if you don’t have to sell – don’t. Wait until the storm passes, and it will and you are sure to achieve a much better price.
Where is your home located and what is the trend in your suburb?
Your suburb location is important because each suburb has a different demand and desirability from buyers. In the Moreton Bay Region, we are experiencing strong demand in all suburbs, particularly stand alone homes that are suited to families. Currently our days on market is less than 30 days. The trend in your suburb can be measured by how many days does it take to sell a property (days on market) which is a great indicator for identifying demand.
If you are watching the news you may be hearing about how the Auction clearance rates have been fairing in each capital city. At the time of writing this article the clearance rate for Brisbane is 37.5%.
Figure 1. Source Core Logic, Results for the first week in July 2020The problem with using Auction clearance rates as a barometer is that they only represent a very small portion of the actual sales for that period. If we look at Brisbane for example, there are 188 suburbs and in the same period there were 1075 private sales. From the figures provided in Figure 1. from Core Logic, the Auction clearance rate is equivalent to less than 1.5% of total sales. To measure the market trend for your suburb using Auction clearance rates for capital cities is, at best, misleading.
In conclusion, if you are looking to sell your property in the Moreton Bay Region that you reside in or you have an investment property with a lease about to expire it’s a great time to sell and you should expect an excellent price. On the other hand, if your property is more suited to an investor you may want to hold off a little while longer.
If selling your property will improve your life, go for it. Your only challenge from here is How do I choose a great agent.
Article by Frank Pike
