Selling your house hastily at the wrong time could reap negative consequences for years to come… A nightmare no one wants to endure!
But luckily, there's a few things you can do to ensure it doesn't happen to you. When questioning, "Should I sell my house now?", getting the valuable advice of real estate professionals and ensuring proper preparation will boost your knowledge and confidence to sell — even in the worst market conditions.
Whether or not you choose to sell straight away will depend on a multitude of different factors, from the market conditions to the urgency of your own personal circumstances. Let's explore the current real estate climate, the 2020 housing market predictions, and the pros and cons of waiting for the best time to sell a house or selling now.
The current state of the Australian property market
According to Domain's June 2019 property market forecast, property prices across the nation are expected to stabilise by the end of the year.
Most forecasters and analysts are predicting that the property downturn is set to bottom out in the last half of the year, with more falls to come but at a slower pace. The general outlook is that the market will recover in 2020.
With a weak start to 2019, we're finally seeing a turnaround due to a number of changes recently announced. Importantly, the Reserve Bank has slashed interest rates with more reductions expected.
"With a weak start to 2019, we're finally seeing a turnaround due to a number of changes recently announced"
The May election results were favourable regarding negative gearing rules, which will remain the same, and new lending changes introduced by APRA should make it easier for people to borrow.
These changes combined with improved property sentiment should see the capital cities property price falls easing, and the property market predictions are that prices will bottom out in spring of this year.
Melbourne and Sydney are already showing signs of easing and house prices have risen in Sydney for the first time in two years by 0.1%. Melbourne recorded a 0.2% rise over the month of June. Both markets are still down over the past quarter and falls are continuing across the rest of the capitals.
Domain forecasts that house and unit prices will grow by 1% in the six months to December 2019. Other positive signs that support the current forecast is that attendance rates for inspections are up by 15%, showing that buyer interest is certainly growing post election, and auction clearance rates are consistently improving.
2020 Australian property market forecast
Housing market predictions shared by analysts and forecasters for 2020 suggest that we can expect modest price growth as the nation recovers from the property downturn.
With interest rates at an all-time low, fewer new housing construction projects in the works, and treasury forecasting a stronger population growth of 1.75% over the next three years, prices should be pushed up.
This will likely be muted as investors and home buyers still exercise caution as tight lending conditions continue, along with high levels of household debt.
"Despite experiencing the biggest housing correction since 2012, the issue of housing affordability is still prevalent"
Despite experiencing the biggest housing correction since 2012, the issue of housing affordability is still prevalent, and on a larger scale the nation's overall economy is still slowing, with wages growth remaining low. This all points to modest price growth for 2020.
The Domain economic modelling predicts that house prices will grow by 2 to 4 per cent and unit prices will rise by approximately 1 to 3 per cent.
Should I sell my house now or wait for a better opportunity?
Are you asking yourself, "Should I sell my house now or wait?" It's a huge decision to make and deserves all your careful consideration weighing up the pros and cons.
Holding on for too long when your financial situation is already strained could end you up in serious trouble with the banks... But, a snap judgement call based on falling market conditions could see you missing out on a lucrative equity building opportunity that could be just around the bend when prices skyrocket again.
To help you with your decision making, we've put together a bunch of key factors to consider. Let's take a look at the pros and cons of waiting or selling now:
Even though conditions are improving, it's still a buyer's market. But this doesn't necessarily mean selling would be the worst decision. In fact, it could work out better for you in the long run, as long as you do your research and speak to the right real estate professionals.
There are many reasons you might be looking to sell your property now. This may include relocating to a new city, expanding your family, or seeking investment opportunities.
Here are some of the pros to selling now:
- It's a buyers market. Yes, this is a pro. If you are selling now, it's likely you're about to buy a new home. Whether upgrading or downsizing, with lower interest rates and the ability to buy something better for less - a smart sell now could leave you reaping the rewards for years to come with a new home and better mortgage.
- Spring is just around the bend. Known for being the best time to sell your property, now is the time to prep your property and speak to a reputable agent for advice on selling.
- You have positive equity. If your finances are secure and you have built positive equity, signs are positive to sell and bag your upgrade.
- Your local market is strong. If your local property market is strong, then take advantage and sell now. You could get a new property at a better price in a buyer's market and end up with a win-win situation on your hands!
- The issue of maintenance. If you can no longer keep up with the repairs and maintenance on your home, and it's the memories alone keeping you there, there's a good chance you should sell now.
Waiting for later
On the flip side, here are some reasons it might be better to wait before you sell:
- You can't afford to sell. If your finances aren't sorted and you can't afford all the extra costs that quickly accumulate when selling a property, it's probably not a good time to sell. If you have negative equity, waiting a few years to build it up is a sound decision.
- Property prices are on the rise. With prices pushing up and a return to seller's market conditions on the horizon, you might want to take advantage of the appreciation before selling on.
If there's a strong rental market in your area, renting out your home as an investment opportunity in the meantime could prove lucrative, as long as what you earn covers the cost of the mortgage. Be sure to factor in any property management fees and maintenance costs.
Remember, that when it comes to selling a property, each area or suburb has its own market conditions that might not necessarily reflect that of the whole city or state.
"The best course of action you can take is to speak to the top real estate agents in your area"
When you're questioning, "Should I sell my home now?", the best course of action you can take is to speak to the top real estate agents in your area before you make any quick decisions. You want to do it right.
For more information on all the steps you will need to take, read our Smart Seller's Guide which can help you sell better, smarter and faster.