Should i sell now or wait? COVID-19 Update
11 May 2020
It’s been an uncertain few months for the Australian economy and if you were planning on selling your property in 2020, you may now be asking “should I sell my house now?” or wait?
Whether or not you choose to sell straight away will depend on a multitude of different factors, from current market conditions to the urgency of your own personal circumstances.
Let’s explore the current real estate climate and the pros and cons of waiting it out or selling now.
The current state of the Australian property market
The latest property market updates from April 2020 indicate that while property listings are 35% lower year-on-year, Australian housing values have remained resilient, posting an increase of 0.3% in April.
According to Mr Tim Lawless, CoreLogic’s Head of Research, while values were up for most regions in April, the pace at which values grow slowed from 0.7% in March to 0.3% in April. This time period coincides with the implementation of social distancing policies, which had a large effect on consumer confidence.
"Australian housing values have remained resilient, posting an increase of 0.3% in April."
The good news is that so far, the strong effort by Australians to social distance has been successful in flattening the spread of the virus. The QLD State Government has already started to lift real estate restrictions, giving the industry a welcomed boost.
From May 1 2020, the Queensland Government announced that 6 people are now allowed at open house inspections including the real estate agent with no more than one person per four square metres, whilst this number will be lifted to 10 people from next Saturday 16th May.
2020 Australian property market forecast
With circumstances changing daily, it is difficult to predict exactly what will happen in the property market for the remainder of 2020.
Industry analysts have predicted that restrictions are likely to be eased in a reversed order, and an article published by the ABC has given more legitimacy to this prediction, with political sources stating the same.
Adrian Kelly, the President of the Real Estate Institute of Australia told Domain that while easing of real estate restrictions is good news for the industry, it needs to be done carefully.
"If consumer spirits start to bounce back to more normal levels, this is when we should start to see housing activity lift."
“We would obviously like to see that extended throughout the other states, but at the same time that needs to be done very slow and steady because the last thing we need in Australia is a second wave of the virus to occur.” he said.
In terms of property values, Mr Lawless states that “the magnitude of housing values falls depends on a broad range of factors with most hinging on the timing and extent of social distancing policies being lifted.”
Mr Lawless also says that the coming months will provide more clarity on the direction of the housing market and one of the most important indicators for the property market is consumer sentiment. "If consumer spirits start to bounce back to more normal levels, this is when we should start to see housing activity lift from their current low levels".
Thinking of selling?
In this climate, the agent you choose is more important than ever.
Are you still asking yourself, “Should I sell my house now or wait?”. It’s a huge decision and in the current climate, deserves all your careful consideration weighing up the advantages and disadvantages for each.
To help you with your decision making, we’ve put together a list of key factors to consider. Let’s take a look at the pros and cons of waiting or selling now:
Selling now
There are many different reasons why you might be looking to sell now. Although the current climate may be uncertain, it is important to remember that the market doesn’t stop. There will always be properties going to market and buyers out there wanting to buy.
Here are some of the pros to selling now:
Agents are still seeing great results. Real estate agencies are still running and agents around the country are still reporting great sales above reserve prices.
The buyers are genuine. There may be less buyers on the market at the moment but the ones that are currently looking for properties are genuine and pre-qualified. Buyers are also incentivised to purchase now in order to take advantage of the low interest rates.
Prices are holding steady. So far, we haven’t seen much drop in property value. This could change in the next few months so if you do have to sell, it may be worth thinking about going to market now.
Real estate restrictions are easing. Easing of real estate restrictions is good news for the industry as processes return to a new normal. Easing of restrictions should have a positive flow through to consumer sentiment.
There may be an oversupply of property come spring. The fact that many are currently waiting it out could mean that there may be an oversupply later in the year as sellers rush to market.
Waiting for later
On the flip side, here are some reasons it might be better to wait before you sell:
There is uncertainty. At the moment, no one knows exactly what impact Coronavirus will have on the property market. If you don’t need to sell now, it might be a good idea to wait for things to settle to get a clearer idea of the situation.
There are less buyers on the market. Uncertainty in job security will mean that there will be more potential buyers sitting on the sidelines.
The verdict
Remember, that Australia does not have “one” housing market and during these conditions, different areas will be affected differently.
If you need to sell your house during this time, it is more important than ever to find an experienced real estate agent with a good strategy in place.
If you’re unsure and still questioning if you should sell your home now or wait, the best course of action is to speak directly with us and we can offer guidance based on your current situation.
Reuben Packer-Hill
Licensed Real Estate Agent
McGRATH Estate Agents
Information sourced from:
“Should I sell my house now or wait? Covid-19 2020”
Published May 7, 2020
Last updated on May 7, 2020