So, in 2022, should I sell now or wait?
Consumer mood has taken a knock, and interest rates have risen for the first time in over a decade. Sellers have a lot on their minds right now.
So, is it better to take advantage of the current selling conditions when prices are still at their almost peak? Or should you wait and see how the market performs?
Outside of market conditions, there’s also lots of factors to consider. What’s your situation? Can you wait where you are for the market to rise to maximise your wealth, or do you need a bigger house for your ever-expanding family like yesterday?
The median Australian house price increased by just over half a per cent in April 2022. Whilst a significant decrease from March 2021, if you look a bit closer, there’s more going on.
Both in Sydney and Melbourne markets experienced price drops during the quarter. However, on balance, Brisbane and Adelaide keep moving forward as listings remain low and buyer demand remains high primarily. Some of the monthly growth in these regions has slowed down.
The old supply and demand – very often the key to determining each metro area’s growth patterns. In Sydney and Melbourne, where affordability has become a significant concern, total stock on the market is closer to average levels, and as a result, buyers have become more selective.
What’s probably more critical now is how far and how fast interest rates will rise. The answer could be telling in determining which way house prices will move.
Most major banks and leading economists suggest that interest rates will rise between 1.0 and 3.5 per cent, causing housing prices to decrease.
While different markets will deliver different results, sellers who want to lock in the substantial gains made over the last 18 months should list as soon as possible before rates increase more and home prices fall.
It’s totally understandable if you’re still undecided about selling. It’s a big decision that requires a thorough assessment of the benefits and drawbacks.
Even if the market appears shaky, keep in mind that everything is relative, and the market does not stop. There will always be houses available for sale and purchasers looking for a home.
Recognising that conditions will differ from one suburb to the next is critical, so you must understand your local market.
The impact of price increases or decreases on your property is determined by various factors, including location, property type, and whether your home is in the higher or lower price range. Understanding these factors can really help you reach an informed decision.
If you think the time is right, the next step is professional, informed and impartial advice. Spot On offers expert property ownership matters guidance – speak with us today.