It’s a perennial question asked of real estate agents: ‘when is the right time to sell?’
Whether you’re looking to upsize, downsize, for more land, for a low maintenance ‘lock and leave’ or are on the scout for a forever dream home, making the decision about when to list your property for sale will largely depend on your personal circumstances.
Sometimes, vendors will also be guided by selling in specific seasons.
For example, the popular and fervent spring selling season when the weather is warming up and gardens are in full bloom. Or perhaps, you need to sell in summer to ensure your children are settled in a new home and possibly new location well before the new school year starts.
MARQ Licensed Agent Sam McGregor said determining the ideal time to sell should be prefaced by one simple question: ‘When is it the right time for you?’
“There are so many variables when it comes to buying and selling property – and only you know when the time is right,” Sam said.
“If it’s time to downsize, then it’s time to downsize. If you need more bedrooms, then you need more bedrooms. A lot of the decision-making depends on personal circumstance.
“Generally, trying to be profitable is something you should never consider when trying to time a sale, although that’s easier said than done when we’re talking about what is likely to be your biggest lifetime investment.
“Anyone who tries to time the market to make the best financial decision may get it wrong. If the very best property experts can’t always time it right, vendors can’t expect to get it right.”
Sam said different sectors and price brackets in Canberra real estate were responding differently to market conditions.
He said demand for apartments and units in Canberra had surged over larger, more expensive dream homes on the back of consecutive interest rate rises over the past seven months – a trend that is likely to continue if forecast ongoing interest rate rises transpire.
“There are certain price brackets that are being impacted by the interest rate rises more than others, but all in all, quality properties are always going to sell,” Sam said.
“At the moment, units and apartments are more appealing than they have been and that’s largely due to the price point. Family homes are also selling and properties in the $1 million to $1.2 million price bracket are flying out the door.”
However, Sam said some homes in the $1.2 million to $1.5 million market were stagnating – a casualty of this year’s back-to-back interest rate rises, which had impacted the borrowing capacity of buyers.
For example, a joint family income of $180,000 meant previously a buyer would have been able to spend up to $1.5 million on a new home, but now their borrowing capacity was closer to $1.2 million, he said.
Sam said with the Reserve Bank of Australia warning of possible further interest rate rises in coming months, now was prime time for buyers to make a purchase to ensure their borrowing capacity was not affected further.
Prospective sellers should be having an honest conversation with an agent who understands the Canberra market so they can help formulate a solid strategy about how to best sell their property in the current market conditions, he said.