Timing the Property Market: How To Know When To Sell
The market of Inner West Sydney fluctuates a lot and you, at the other hand, want to sell your property. The question arises, is this the right time?
It’s very important to analyze the situation of the market and see if it has reached its peak potential or not as this can directly influence how successfully you can sell your property and how much you are going to gain from it.
In this article, we will be looking at the observations that we have obtained by analyzing the recent changes in the market.
When the demand opposes the supply
What will happen if the demand of a certain property is high but its supply is low? This can actually play in favor of you as this is one of the most efficient ways of finding out the probability of an increase or decrease in a property’s price. According to our observations, the year of 2016 witnessed a depreciated value of supply in Sydney’s Inner West. The 2017, on the other hand, is looking to be in a good shape as sellers have started to take an action and the overall supply has increased throughout Sydney.
Moreover, it is also important to keep a regular eye on the auction clearance rates to determine the possible fluctuations in supply and demand. The higher the auction clearance rate, the more the competition as buyers will be looking forward to take hold of their favorite properties.
The role of interest rate in affecting the market
The recent announcement shows that the interest rate has risen to 3.5 per cent cash rate. With this friendly figure, the supply is very likely to be boosted just like we witnessed a similar market change during the GFC in 2008. For properties that exceed the benchmark of three million dollars, some observations like lower clearance rate, prices having a downward pressure and more days in the market might be witnessed.
The expected projection of clearance rates in summer
The pattern in the last two decades of Sydney’s properties shows that even if the interest rates are not considered in mind, the clearance rates of the auctions are still decreasing during summer in comparison with its peak potential in spring. The people who are wishing to sell their property during these times should come up with a strategy in terms of right pricing, timing and advertisement.
Even if you are hoping to sell in the off-seasons, you do not need to become over-worried because the Inner West side of Sydney is the most sought-after side in terms of ideal properties. So, what matters mostly is how you strategize your plan in accordance with the trends in the market. For example, it will be unwise to sell your property when other owners are also selling a similar property as it will give them a bargaining advantage over you.
All markets have fixed price ranges? Think twice!
The Inner West side of Sydney is popular for containing literally heterogeneous markets. That is, that almost every market has its own price range. If we look back at the 2017, we will find out that the properties that crossed the benchmark of $3 million were not dependent on interest rate for market changes but rather on wealthy buyers from overseas and those people who are independent from mortgages.
Similarly, the properties which were priced below $2.5 million were more vulnerable to interest rate to affect them. For example, a higher interest rate may attract buyers from this category to put a downward pressure on the overall prices of the properties.