It’s always a good time to sell a property, regardless of whether the market is going up or down. However, it depends on what the onward move is. If someone is moving up to a larger property and the market has come off by 5%, it’s a great time to make the move. But for those who want to downsize, it may be less attractive. If someone is planning on downsizing, it is recommended to be in a property that’s right for them and their family.
Is it a good idea to wait if someone is planning on downsizing?
If someone can afford the move, it is not advisable to hold off on moving because they’re trying to play the market. It is more important to be in a property that’s right for them and their family. It’s difficult to call the top or bottom of the market, and very often people will miss that moment anyway. The joy and benefit of being in the right property for you and your family, in the agent’s opinion, far outstrips any financial gain on a 5% trade if someone is trying to play the market.
What are the top three tips for sellers now?
First, it is important to take an agent’s best guidance on pricing as they know the market and have the data. Second, presentation is critical. Third, if someone is selling to buy, it is advisable to plan their onward purchase and start searching at the same time. If someone goes under offer, they do not want to be holding that process up, particularly if they’re looking for a forever home.
What is the typical profile of buyers at the moment?
There has been no change in the profile of buyers compared to the previous year. Agents are still seeing overseas buyers, first-time buyers, and needs-based buyers.
Is there less demand from buyers at the moment?
After the mini budget at the start of Q4 last year, buyer numbers dropped dramatically very quickly, in some cases by 50%, compared to what agents were seeing before the mini budget. However, for the first couple of months of this year, those numbers have recovered considerably, and agents are seeing a large number of new buyers coming back into the market. There is a realization that interest rates are not going to be 6% – 7%. The swap rates between the banks have come down considerably, which is encouraging people.
What impact will mortgage rates have on the property market this year?
Most mortgages over the last five years have been stress tested at 3% to 4%. That has already been factored into the market. While it might not be as comfortable and people might not have as much free cash, agents are not seeing forced sellers coming to the market, desperate to exit their property because they can’t afford their mortgage rates. Agents are not seeing a crash in any way, shape or form. Agents are seeing some of that really toppy part of the market, the froth from the first three-quarters of last year (which saw 5% gains from 2021), coming off of the market. But there is a lot of activity, buyers are coming into the market this year, viewing numbers are high, and there is a solid outlook for the rest of this year.
What is happening with asking prices at the moment?
Agents are seeing a higher volume of price adjustments in the marketplace. But when a property’s been on the market for a while and has a price adjustment, it’s stimulating a lot of interest. It’s about being correctly priced against where the market is trading.
What can sellers do to make their home the one buyers want?
First impressions matter. The presentation of the property as it appears to the outside world is really important. The photos that the seller provides to showcase their property should be of high quality and show off the best features of the home. Additionally, ensuring that the home is clean and clutter-free can also make a big difference in attracting potential buyers. Making any necessary repairs or upgrades can also increase the home’s appeal, such as fresh paint or updated appliances. Finally, pricing the home competitively can help it stand out in a crowded market and attract more interest from buyers.
