The property market moves in cycles. On the way up, prices rise and property is in high demand. Eventually, it hits a peak and slows down. Buying demand dissipates and prices can fall. That’s when some home owners panic. They question whether they should wait it out or cut any losses by selling now, especially if they bought at the peak of the cycle.
So, what should you do when the property market falls? Here are your options.
This is usually the best option. Property should be held for the long term and that means waiting out the inevitable cyclic lows that will occur during your ownership. However, if you’re thinking of selling already, you need to understand that market cycles usually move slowly. If the market is just starting to fall now, it will probably be at least a couple of years before it picks up again.
If you’re thinking about selling but can’t quite make up your mind, speak to an agent about testing the market.
List your property on homes.com.au, the cheapest online platform available to advertise homes; and see if there’s enough interest to warrant investing in a full advertising campaign.
“Testing the market also gives you a clear idea of the selling price you should expect,” said homes.com.au Founder & Managing Director, Pat Carbone.
If you find no one’s biting, then it might be a sign to hold off a little longer on selling.
In a slow market, a drop in demand can make home owners wary of selling. This can lead to lower supply of homes for sale, which can work in your favour if you need to sell. The less competing stock for sale, the better your chances of selling in a reasonable timeframe for an acceptable price.
Spring is traditionally considered the best time to sell, however there is much debate within the property industry about this. More home owners list their homes for sale in Spring, which means greater supply. This encourages more buyers to get into the market because there is more choice.
However, many agents say Winter is the best time to sell. They argue that buying demand doesn’t change much between seasons, and given fewer home owners sell in the colder months because they believe Spring is best, Winter offers great prospects for a strong selling price.
If your property is a quality home in good shape and priced correctly, then you’re likely to find a buyer no matter what the market is doing. There are always buyers out there and if you’ve put in the work to ensure your home is nicely presented, you’re more likely to get a sale.