Why Procrastinating Your Sale Now Will Cost You Money

We all know what the real estate market has been like over the last 2 years. Every week I go through and do 12 month re-appraisals for past clients on their homes and even though I have been on the front line of price increases and competition, i am still amazed when I am providing a $100,000 — $200,000 increased estimate for the past year.

So, we are coming off a monumental market. But that has peaked, and now we need to navigate a changed environment. Newcastle & Lake Macquarie prices are holding and underlying demand both locally and out of area is still good. But there are some factors that will be out of a buyers control, even if they are still confident about purchasing. Here are 3 of them;

1. Buyers who have pre approval now will be re-rated in 3 months

2. In another 3 months buyers who are ready to buy now, will only be able to spend less depending on how far interest rates have increased. This is even if nothing else changes with their income, assets and expenses

3. And the last hurdle will be a bank valuation. Even if you have an offer accepted within a buyers pre-approved limit, the comprable sales data that a valuer will typically use to support the purchase price, will only go as far back as 3 months. The further away from the peak of the market your sale is, the less chance you can use those to support your value

Aside from economic factors like interest rates & stimulus, the other big factor at play with the strong results of recent times has been the very low supply of new properties coming up for sale. While the supply still remains below the benchmark of say a 10 year average, homes currently advertised for sale are up about 46% from their lowest point over the last 2 years.

When selling, everyone tries to pick the peak. That window of opportunity is now. If you want to discuss where your property sits, let’s book in a time and show you to make the most of it.