Selling your house involves more than simply listing it on the market and displaying a ‘For Sale’ sign. The property market can be dynamic and unpredictable, and knowing when to sell is often just as important as how you sell.
To help with this process, we have outlined five essential criteria to consider prior to listing your home. By considering these factors, you will be better positioned to determine whether now is the right time to sell.
Personal circumstances
This is the foremost factor when considering the sale of your property. Personal circumstances can include family changes, such as an expanding family or children moving out, or relationship or employment changes, all of which can significantly influence the required size and location of your next property.
Your financial situation represents another crucial personal circumstance to assess. If managing a substantial mortgage is challenging, selling your home and opting for a smaller one could provide better financial flexibility. Alternatively, even without financial strain, selling your home might increase your wealth due to capital gains in your area.
Irrespective of other criteria, if your personal circumstances are not conducive to a property move, it may be advisable to remain in your current home until these circumstances change.
Seasonality
While it is possible to sell a property at any time of the year, certain seasons typically experience increased buyer activity, heightened competition, and ultimately, better prices. So, when exactly is the right time to put your property on the market?
Spring and summer
Spring and summer are traditionally considered the most favourable seasons for property sales. This is primarily due to the warmer weather conditions, which are conducive to outdoor activities and entertainment. Properties featuring indoor to outdoor entertaining areas, swimming pools, or decks are particularly appealing during these months, and showcasing these features is highly beneficial when attracting prospective buyers.
Expert tip: List your property in early spring! While the warmer months typically attract more buyers, they also introduce increased competition. Delaying your listing too far into the season may result in your property being overshadowed by numerous other listings, thereby reducing your competitive advantage.
While spring and summer offer distinct advantages, it is important to acknowledge that heightened popularity often leads to greater market saturation. Consequently, leveraging the expertise of an experienced real estate agent who can provide you with the right strategy becomes even more critical during this period.
Autumn and winter
Autumn and winter are often perceived as less active seasons in real estate. Buyer activity tends to decrease, particularly around the busy holiday period, as individuals focus on other financial and personal commitments.
However, this reduced pace can also present distinct advantages. With fewer listings available on the market, your property has an opportunity to attract more attention with increased visibility, and while overall demand may be lower, buyers who are actively engaged during these seasons are typically serious and prepared to make a purchase.
If your home is warm, inviting, and well-insulated, autumn and winter can also be the perfect time to sell. A cosy fireplace, double-glazed windows, and stylish indoor entertaining areas all become significant selling points for the discerning buyer during this season.
Ultimately, there is no universally applicable answer to the optimal selling season. Each period presents its own set of opportunities and challenges. The most critical element is understanding how your home performs in various conditions and aligning this with your strategy to maximise its potential.
The state of the property market
While this may not be the most critical factor, aligning your property sale with the broader state of the property market can be advantageous, as favourable conditions may present an opportunity for a higher sale price.
Signs indicating a "seller's market" or conditions that favour vendors include low interest rates, which typically correlate with an increase in buyer demand. A higher volume of interested buyers can lead to competitive offers, potentially elevating the final sale price. Monitoring interest rate trends and market activity can assist in identifying the most strategic time to sell.
Another clear reason to sell is a significant price increase in your suburb or region. If the median house or unit price in your area has risen faster than the average, it is likely an opportune time to list your home.
Additionally, high auction clearance rates in your region suggest a strong presence of motivated buyers. This could mean it is a fantastic time to list your property.
This being said, with the right agent implementing the right strategy, whether the market favours buyers or sellers becomes less significant. The state of the property market may contribute to increasing your sale price, but it is unlikely to be the deciding factor between selling the home or not.
Overall economic performance
The economy and the property market are closely related; therefore, if you are considering selling, it is important to assess Australia’s economic climate.
A sign it could be a good time to sell is if the stock market is facing extreme volatility. This is because investors may consider property as an alternative asset class for their capital during periods of stock market instability or when facing potential external economic shocks or risks.
Conversely, strong economic conditions can also signify a good time to sell because buyers' purchasing power will be higher. This often correlates with potential wage increases and improved returns on investment for individuals.
It is important to analyse the impact of economic conditions in your specific area and consult with your real estate agent or financial advisor.
The condition of your property
If you are living in your property but are noticing some areas requiring repair, you might consider renovation. However, it is worth considering selling at the same time, as renovations can be costly, time-consuming, and many homeowners end up overcapitalising.
Look at the market and see if there are other properties that fit your needs more closely. If so, it could be a better option to sell your home than to renovate.
Key takeaways
There is no singular definitive answer when it comes to the best time to sell your home. It can be a challenging decision, but the most important aspect is that you have thoroughly considered the key factors outlined above.
Equally important is having a clear motivation for selling. Whether you are upsizing, relocating, or embarking on a new chapter, a well-conceived plan is beneficial, rather than selling solely for potential capital gains. Understanding your subsequent steps will instill greater confidence and direction throughout the process.
Most importantly, a good agent will ensure that you make the most informed choices when selling your home. Contact your local LJ Hooker agent for their insights on whether it is a good time to sell or easily download our eBook to give you The Complete Guide To Selling Your Home.
DISCLAIMER - The information provided is for guidance and informational purposes only and does not replace independent business, legal and financial advice which we strongly recommend. Whilst the information is considered true and correct at the date of publication, changes in circumstances after the time of publication may impact the accuracy of the information provided. LJ Hooker will not accept responsibility or liability for any reliance on the blog information, including but not limited to, the accuracy, currency or completeness of any information or links.
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