There’s a catch to upgrading in a changing market.
Most homeowners look at their current property and think, I’ll wait until it’s worth more. But here’s the twist: if you’re selling to buy your next home, a softer market doesn’t necessarily mean you’re worse off – so waiting is unlikely to change the equation.
Indeed, your current home may sell for less than it may have in a stronger market; but the price of the property you’re planning to buy is likely to have softened too.
It’s no secret that the property pace has shifted in Sydney’s South West (and beyond), with open homes quieter, properties sitting longer on the market, and auction clearance rates last sitting at 47% (Domain – 26th July) compared with 70% at this time last year.
Additionally, the number of auctions has decreased to 13.2% fewer than the same week last year (Cotality).
So with major shifts in the market, is it actually a good time to buy?
In short – yes. The major reason? There’s still a surprising amount of stock.
Supply isn’t surging, but demand has cooled
Despite the market shifts, Cotality reported 131,407 total properties listed for sale over the 4 weeks ending the 5th July – 7.7% higher than a year ago. Despite still being 3.5% below the 5-year average, it indicates that homeowners are still listing.
And while it’s not quite a case of buyers having their pick of the entire market, there’s certainly plenty to choose from – and far less competition for each property. That means more breathing room to weigh up your options, do your homework and negotiate on price. Something that could make a real difference, particularly for those entering the market for the first time.
It’s a guarantee that property markets will always move; there will always be another forecast, another rate decision, headline and flow-on effect. But what can’t be guaranteed is when the ‘perfect’ buying window will appear, as this comes down to individual circumstances.
For some local buyers, exploring options such as bridging finance can mean purchasing the right home before settlement on the current one, to take advantage of less buyer urgency. And for other home seekers, it might simply be a market to watch, before jumping in.
If you’re considering making a move now or down the track, contact Prudential Real Estate today for the best local advice.
Prudential Real Estate Macquarie Fields | (02) 9605 5333 | macquariefields@prudential.com.au
Prudential Real Estate Narellan | (02) 4624 4400 | narellan@prudential.com.au
