Are you thinking about selling your home but unsure if now is the right time?
With the ever-changing coverage on property prices and interest rates, it can be hard to know when to make your move. The current market conditions in Sydney are aligning, presenting new opportunities for savvy sellers.
Property prices are still up
After such a long period of growth, it’s not surprising that a slight decrease in property prices would receive massive amounts of media coverage. However, zoom out and you’ll see prices across Sydney are still up quite considerably in the last 12 months alone. In Campbelltown, realestate.com data shows house values have jumped 5.3% in the last 12 months, while Liverpool increased 7.7% and Narellan by an incredible 9.8%. It doesn’t take an investor to know that’s a great return.
Price changes generate demand
It doesn’t matter that the downward price shift is small, the media attention is grabbing the attention of buyers. This is evidenced in the sheer number of buyers in the market. For example, in Campbelltown alone 51 houses have been available in the last month to an incredible 1909 buyers. That’s 37 buyers to every single house for sale; a huge level of demand you can leverage to get the best price. Plus, with the latest ABS data showing building approvals are falling at a record pace of 9%, there are fewer new houses on the market, which means higher demand for existing properties.
You could get a bargain on your next property
House prices are tipped to continue tightening in 2023, which is good news for those looking to upgrade. Given that properties on the higher end of the market are traditionally more volatile, owner-occupiers looking to upgrade could snag a lower comparable price on their next home. On the other hand, investors able to bank their cash may be able to take advantage of lower prices later in the year. It’s a win-win, no matter where you stand.
Interest rates really aren’t that bad
Each time the Reserve Bank of Australia (RBA) hiked the cash rate in 2022, banks and lenders were quick to pass on the change to borrowers. Sure, interest rates have gone up in the last year, but they’re still low. The average variable home loan interest rate in Australia in January is still sitting at 5.64% p.a. While it’s easy to get caught up in media hype, an interest rate of around 5% is historically low, and it’s miles off the all-time-high of 17.5% in January 1990.
And, regardless of whether you sell now or later, chances are you’re still going to be paying the going interest rate on that home loan. Plus, you might even find that selling is the push you need to finally refinance and get a better deal.
So why wait? Summer is a great time to sell – buyers are ready and the sunny weather makes for great turnouts at open homes. Don’t miss out on the current market opportunities by waiting for school holidays to end or prices to begin climbing again – buyers certainly won’t. List your property now and take advantage of these favourable conditions.
Statistics referred to in this article were obtained from publicly accessible and online data sources including realestate.com.au, abs.gov.au and others.
Prudential Real Estate Campbelltown | (02) 4628 0033 | campbelltown@prudential.com.au
Prudential Real Estate Liverpool | (02) 9822 5999 | liverpool@prudential.com.au
Prudential Real Estate Macquarie Fields | (02) 9605 5333 | macquariefields@prudential.com.au
Prudential Real Estate Narellan | (02) 4624 4400 | narellan@prudential.com.au
