Selling in 2019? Here’s what to consider.
Thinking about selling in 2019? As a seller, it’s a good idea to talk to a few property professionals to help you understand how to sell your house fast in a slower market. We’ve pulled together some key factors to consider and talk through with your agent if you’re thinking about putting your house on the market over the next 12 months.
1. Average property prices in your area
Looking at average property prices in your area is a good starting point. Especially if your property is comparable to those around you in terms of size and era. To get an idea of what properties in your area are selling for, you can find out this information by comparing real estate agents using our online comparison tool. Or, you can take a look at at average sales prices in your area by entering your suburb here.
2. What do market trends look like across the country?
House prices are cooling across the country and there are predictions for a house price drop over 2019. With Sydney and Melbourne prices dropping by 7.35% and 4.67% respectively year on year (CoreLogic), it’s a good idea to talk to a property expert to see where your property stands. Remember, there are markets within markets. And even if you’re located in one of these cities, property price trends in your area could be significantly different.
3. The upcoming election
What does the upcoming election mean for sellers? Depending on the outcome of the 2019 election, we may see a further changes that impact the property market if negative gearing and Capital Gains Tax changes are not repealed, especially in Sydney and Melbourne. This may be an incentive for many homeowners to stay safe and get their properties on the market in the earlier months of 2019 incase changes to negative gearing and CGT come into effect soon after the election.
4. A potential climb in interest rates
Economists are predicting a climb in interest rates over the next two years. So, what does this mean for sellers in 2019? Over the past 5 years, interest rates have declined to an all time low. This means the servicing cost of a home loan is cheaper than it has been in the past. Rising interest rates will affect those buyers who are looking to obtain a home loan in order to purchase a property. This means as interest rates climb, it could become harder to sell your property as buyer demand drops. This means, selling in early 2019 may be a smart idea before interest rates begin to hike. Your local real estate agent will be able to give you an idea of buyer demand in your area.
5. Changing lending criteria
As a result of the ongoing Banking Royal Commission, the tightening of lending criteria has had a direct affect on property investors securing home loans or obtaining the loan amount they would like to secure. However, loosening of these initial changes is also a possibility in 2019, which would have a positive effect on buyers and sellers.
6. When should I sell my house? – Time of year
If we’re talking seasons, traditionally, spring is the season of selling. However, location can have a big impact on your sale price at different times of the year. For example, if you’re selling a coastal home, you’re likely going to get more people looking to buy coastal properties in summer, and possibly a higher inspection attendance as people are on holidays. Your property may also present itself in warmer weather. If you’re selling a cosy country home, you might decide to sell in the cooler months. It’s also important to stay mindful of public holidays if you’re thinking about auctioning your home, as people tend to go on holidays over long weekends such as Australia Day weekend, Easter weekend, Queen’s Birthday weekend, just to name a few. If you’re unsure on the best time to sell in 2019, it’s a good idea to talk to a local real estate expert to get their professional advice.
7. Your personal situation
Yes, there are significant economic factors that will generally have an impact on your decision to sell. But according to property expert Chris Butterworth, there’s no more important factor than your own personal situation. Here’s what Chris Butterworth, Sales and Training Manager at Century 21 Coast Realty Mandurah has to say about selling in 2019: “Selling and buying in 2019 could be the most cost-effective market to upgrade, downsize, relocate or just get yourself on the property ladder,” Chris says. “Selling costs and buying costs being a percentage reduce accordingly. For those upgrading to move up the property ladder, that gap reduces proportionality. For instance, if you had a $500,000 house and wanted to upgrade to a $1,000,000 house you will need an extra $500,000. If the market dropped by 50% and your house is now worth $250,000, that same $1,000,000 house will now be worth $500,000, so you will only need to borrow $250,000. These are extreme numbers, but it shows my point,” he says. “Don’t forget, your personal home is not an investment. It may make money, it may lose money, but at the end of the day it is yours and you have enjoyed it. Selling is about change, finding a new location, going for a bigger home, or just a change of scenery. That is a personal decision that is based on emotion and family. The value that you’re selling for is just a telephone number that bears no reflection on your personal choices. Waiting for a better market to have a bigger telephone number written on an offer is going to put your future plans on hold,” he says. “Time is the most valuable asset you have, not your property, and putting your life on hold waiting for a better market is a waste of your time,” Chris says.
Tips for selling your house in a slow market
- Know your target market so you can tailor your property listing to them
- Agree on a detailed marketing strategy to break through competition
- Stage your property for photography and inspections
- Be careful not to over price your property
- If auction clearance rates are down, consider selling privately (also saving you on marketing costs)
Should I sell my house in 2019? Next steps.
It’s up to you and your real estate agent to conduct your own research to determine whether it’s the right time to sell a house, and you’re going to secure an ideal price for your property in the current local market. As mentioned by Chris from Century 21 Realty Mandurah, always remember your personal life when making your final decision. The price you’ll get for your property depends on a myriad of factors, not market conditions alone. It will also depend on your real estate agent’s skill set, their marketing strategy and your efforts in preparing your home for sale to impress the maximum number of buyers. To find the right real estate agent for your property, you can compare agents using our online comparison tool. Here, you can compare commission information, marketing strategy, sales history and independent homeowner reviews. Compare agents now.