If you’ve been thinking about selling your property this year, now is the time to act.
The market is white hot and it's a great time to sell, but the clock is ticking as Christmas fast approaches.
What’s the current state of the market?
There’s no doubt that the Sydney property market is on a roll. The numbers tell the story.
While buyer demand is at an all-time high thanks to record low interest rates, the supply of properties for sale is very low. Data from SQM Research shows that there were 27.5% fewer properties on the market in August 2021 than there were a year earlier.
That means that properties are selling incredibly quickly as keen buyers snap them up as soon as possible to avoid missing out. Before the latest lockdown, our properties spent an average of 27 days on the market. Now, that figure is down to just 18 days. Buyer interest is so strong that we’ve reduced our auction campaigns from four to three weeks, and we’re selling more homes off-market than usual too.
Even though lockdown put in-person auctions on hold, it failed to dampen auction clearance rates – in fact, they’re higher than they’ve been in at least 18 months according to SQM Research. For example, the clearance rate on Saturday 25th September was 85%; at the same time last year, it was only 70%.
And, of course, the high demand, low supply situation, coupled with low interest rates, has sent sales prices skyrocketing. According to CoreLogic, Sydney property prices were up a jaw-dropping 20.91% year-on-year in August. That’s the fastest annual pace of growth since 1989. Our team has achieved several record-breaking sales in recent months, including surpassing the building record in Alexandria’s Datum building twice in a week.
What are the experts predicting the market will do next?
The big four banks have forecast growth for the Sydney property market of between 21.6 and 24 per cent this year, but they’re expecting the rate of growth to slow as affordability starts to curb buyer activity. Their forecasts for growth in 2022 range between 3 and 5 per cent.
Recently both the Reserve Bank and CBA’s chief executive Matt Comyn have expressed concern about Australia’s rising level of household debt linked to high property prices. If lending restrictions are tightened, it could well cause a slowdown in the market. Selling now ensures you capitalise on the current market momentum.
Want to sell your property this year?
With Christmas fast approaching, there are only a few weeks left to get your property on the market and have the sale wrapped up before the end of the year. Now is the time to find an agent and, together, prepare your sales strategy. If you want to sell before the end of 2021:
- Get your property as close to open-home-ready as possible. Declutter, tidy up the garden if you have one and carry out any necessary repairs.
- Research local real estate agents. Which agents are getting good results? Who has a good track record? Find an agent with whom you have a rapport. A good rule of thumb is to choose an agent from whom you would be happy to buy a property.
- Together with your agent, decide on a sale method (auction or private treaty), plan a marketing strategy, set a sale price and get your property on the market.
If you’re thinking about selling in the inner west or inner city before the end of 2021, my professional and friendly team can help. Get in touch today.