D-Day: 6 reasons to sell property in a correcting market
POSTED BY John Ireland ON 16 Dec 2020
The property market in Australia might be slowing down, but life still goes on. There are many reasons why you might need to know how to sell a house fast in a slow market in 2019. Here are the most common reasons why Australians are selling a home in a cooling market, and why it can actually turn out to be a positive move.
Why is the property market slow?
The real estate market in Australia is currently going through a correction, as we come down from the property market boom. Prices of houses and apartments have fallen by between 10 and 20 per cent in most major Australian cities.
But are houses still selling? Of course they are, as life still presents many different reasons why people need to sell their homes. The downturn is slowing, but there is no need to wait if you need a quick sale. There are advantages if you know how to sell a house in a bad market.
What are the main reasons for home sales in the current market?
Here are the six major reasons for fast home sales, and why these can present positive opportunities for you.
Now is an ideal time to upgrade, as you can buy a larger home for a more realistic price. So if your family is outgrowing your current home, or you have made or inherited a decent amount of money, the current market presents a good opportunity to move into a larger property.
If your children have left home, or you are about to retire and want to free up some equity, you should consider downsizing. This has several advantages:
- You can release equity to do the things you’ve always wanted to do, such as travelling or maybel helping your child onto the property ladder.
- You can move to a smaller home in the city if you’re tired of suburbia.
- You can enjoy more free time in a property which requires less maintenance.
What you do with your money is up to you, but in a slower housing market, there are plenty of bargains to be had.
Debt instigates a large number of property sales. Perhaps your home is now in negative equity, or you might have bought a property off the plan that you now can’t sell or rent. Additionally, lending conditions have become much tighter, with many lenders now requiring a deposit of up to 30 per cent.
You can take advantage of the current climate by marketing your property at a lower price, making it more likely to sell.
More and more Australians are choosing to move to rural or coastal areas to enjoy a more environmentally friendly, slower-paced lifestyle (that perhaps also involves a career change). This gives you a whole new start. Another key advantage of moving out of the city is that house prices are more affordable than in major cities like Sydney, Canberra and Melbourne.
Sadly, this is one of the more common reasons for Australians needing to sell a house in a cold market. The good news is the current housing market makes it easier to find a comfortable new home for a lower price, helping you to move on with your life.
If you inherit property from a deceased relative or friend in Australia, you can avoid capital gains tax if you sell within two years.
Choose an agent who’s weathered many property cycles
If you know how to market a house for sale, the current cooler property market can work to your advantage. Whatever your circumstances, choose your agent wisely. The right agent will take the time to understand your position and know how to generate interest in your house, so you can sell at the right time and the right price.
As Principal of Bespoke Property Co in Avalon Beach, I’m passionate about both running the real estate agency and being an active selling agent. Combining my extensive property background with a commitment to providing a premium service, I offer home sellers and property investors in-depth advice, such as low-cost home improvements to strategies that will maximise your sales result. If you are looking for a down-to-earth, passionate and detail oriented real estate team, let’s connect!
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