The property market has been turning around as of the second half of the year.
Overall dwelling values in Sydney, Melbourne and Hobart have all had increases for three successive months in a row, whereas Brisbane has had increases for two successive months in a row.
You might be wondering whether it’s a good time to sell your Hobart property or to buy a Sydney home.
The market for buyers
There have been many developments in the Australian property market as of late.
For instance, lower mortgage interest rates and looser lending restrictions.
The market has also seen increased clearance rates, suggesting that there is positive market activity.
More and more buyers are already coming onto the market with the changes that have made borrowing easier.
If you’re looking to buy in Sydney, Melbourne, Hobart or Brisbane, analysts are predicting that prices will continue to go up from now on.
The longer you wait, the higher a price you’ll likely pay.
However, if you’re specifically looking to buy a Brisbane unit, analysts from QBE predict that there might be a chance that prices won’t bottom out until the end of 2020.
The market for sellers
However, even though there is more demand for property, there’s less stock on the market.
Therefore, if you’re looking to sell, there will be a great amount of competition for your property particularly in Sydney and Melbourne.
Despite these markets suffering significantly in the first few months of the year, they are definitely bouncing back.It might be worthwhile to wait it out a little longer if you’re not in a rush to sell.
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Sydney, Melbourne, Brisbane, Hobart and Canberra all saw an increase in overall dwelling values in August.
On the other hand, Adelaide, Perth and Darwin saw small decreases. Perth and Darwin are currently the worst-performing markets, however, it looks like there has been an improvement in the rate of decline.
The market for upsizers
However, if you’re hoping to sell your home to buy an upgraded one, now might be the ideal time.
Waiting too long for the value of your current home to go up could be a risky game.
This is because more expensive properties tend to increase in value at a faster rate than cheaper properties.
You could wait, but this will likely lead to the gap in price between your current home and new home widening even more.
The market for auctions
If you’re upsizing, downsizing or selling your home for any other reason, you might be interested in what the auction market is currently looking like.
Auction clearance rates have been climbing and are now at their highest levels in Sydney and Melbourne since early 2017.
Looking at all the capital cities combined, the auction clearance rate is currently around 80%.
Final words
Overall, changes in the property market will definitely impact how ideal it is for you to act on buying or selling.
It’s important to remember that each local property market will differ from the next.
Getting to know the area you want to buy or sell in is crucial. Talking to a professional and doing research will help to give you the upper hand.
Guest author: Ellen Orton is the Head of Business Operations at OpenAgent.com.au, an online agent comparison website helping Australians to sell, buy and own property.
