The right time to sell

Picking the right time to sell is always a difficult art to master, and if you’re selling — or thinking of selling — in Melbourne or Sydney at the moment, chances are you’re quite excited about the current market conditions. And you have every right to be.

There’s no doubt about it — it’s a seller’s market in these two booming capital cities. Melbourne, for example, recently broke through the $700,000 median price ceiling for the city for the first time, evidence of the strong buyer activity of late.

The median house price in Melbourne soared to $706,000 at the end of the 2015 financial year, up from $671,000 recorded during the March quarter, which represents more than a five per cent quarter-by-quarter increase. As REIV chief executive officer Enzo Raimondo noted, “the last time we had a quarterly increase this great was in late (December) 2014”.

Minutes from the Reserve Bank of Australia’s board meeting on June 2 provided insight into the upward market trend, stating “there was a relatively low stock of dwellings for sale in Sydney and Melbourne and… dwellings took only a short time to sell”. Coupled with record low interest rates and increased buyer activity from local and overseas investors, it proved to be perfect conditions for driving up house sales prices in both cities.

So what does this mean for vendors moving forward? Is the boom likely to continue or can we expect prices to stabilise?

The great news for vendors — and therefore not so great news for homebuyers — is that this trend is likely to continue for the rest of the quarter. So if you’re thinking of selling but waiting for the Spring market, it could be time to consider bringing your plans forward.

Typically, homeowners prefer to sell in Spring as it gives them an opportunity to market their property in the best possible light. Gardens are in full bloom and the interiors are radiant, airy and fresh. The trouble is, many vendors think alike and the Spring market is often overloaded with stock.

There’s also a belief that more buyers hit the market in Spring as opposed to searching for properties in Winter. That’s not necessarily the case.

One of the things you need to consider as a vendor is how your home would appear on the market, particularly in the competitive window from October to November, for example. Does it have enough wow factor? And does it have a point of difference that will allow it to stand out from the crowd?

Choosing to place your property on the market before the Spring rush doesn’t mean your campaign has a higher risk of not selling or will attract a lower price than if sold later in the year. If you consider the current market conditions of low stock, record low interest rates, strong investor activity and enthusiastic first-time and second-time buyers, we have all the ingredients required for a healthy sale price. They’ve been the reasons why both the Sydney and Melbourne property markets have enjoyed so much success of late, and they’re the reasons why I’d encourage homeowners to consider selling before Spring.

Spiro Drossos is a Director and Auctioneer of Barry Plant Manningham. He is a three-time REIV Residential Salesperson of the Year and was nominated for the 2014 REIA National Salesperson of the Year Award.