Australia’s housing market is currently in one of the strongest growth phases on record, but is now a safe time to sell?
Property values across Australia are growing at their fastest rate in 17 years, with CoreLogic reporting a lift in median prices of 2.1 per cent in February to $598,884 – the largest month-on-month increase since August 2003.
As such, the Ray White Group is confident that the housing market is currently experiencing one of its strongest growth phases on record, as buyer activity and confidence continue to lift. But is now the right time to sell?
“The economic recovery is feeding into a solid rebound in consumer sentiment and encouraging households to reduce their savings buffer and spend more,” the agency said in its latest report.
Further supporting Ray White’s findings of the existence of a clear seller’s market are stats that show buyer demand is continuously outpacing new listing numbers. Despite their expectation that stock will lift in March and April, Ray White confirmed demand will continue to trump supply for some time.
“Demand is expected to remain strongest from first-time buyers and upgraders, many of whom are spending money on a house they might otherwise have used on overseas holidays,” according to the real estate group.
Risks
But as good as the current market trends sound, Ray White warned that risks are ripe, particularly in regard to the impending JobKeeper end date and the stagnancy in migration.
While the intensity of these headwinds have somewhat declined over the past months, the report noted that the wind-up of JobKeeper and the end of the JobSeeker COVID supplement is “likely to cause a temporary slowdown in the economic recovery”, which could slow some of the housing market exuberance.
Additionally, the closure of international borders and increasing market supply, which is creating more choice for buyers, are also tipped to affect the future of the property market, the report highlighted.
Risks aside, Ray White clarified that while not all markets and strategies are bound to do well, fundamentals can point sellers to the right direction.
“Our data tells us that our sellers who choose to sell via the auction method are rewarded with a 12 per cent higher price under the hammer than if they’d accepted a prior offer.
“There’s a deep buyer pool for sellers to take advantage of right now,” the report concluded.
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