Sell Home Australian Should You Wait or Sell Now?

Introduction

Whether you choose to sell your home in Australia isn’t just about current market conditions, but also the urgency of your own personal circumstances. Some individuals may need to upsize into a bigger property immediately, while others may be considering waiting for the market to rise in order to release more capital before retirement. In this article, we will explore the current real estate climate in Australia, the pros and cons of waiting versus selling now, and what economists believe is on the horizon for the remainder of 2023 and beyond.

The Current State of the Market

According to data from CoreLogic, Australia’s property downturn halted and reversed in the early months of 2023. Since then, monthly growth has returned to the highest levels seen since late 2021. Let’s take a closer look at the current state of the market in major Australian cities.

Sydney

• Median value: $1,110,660
• Monthly growth: 1.0%
• Quarterly growth: 2.5%
• Annual growth: 7.3%

Sydney has led the pack in the market recovery, with gains of +10.6% from its January low point. The median value of properties in Sydney is now at $1,110,660.

Melbourne

• Median value: $776,716
• Monthly growth: 0.4%
• Quarterly growth: 1.3%
• Annual growth: 1.5%

Melbourne has also experienced a modest recovery, with a median value of $776,716. However, the growth rate in Melbourne is lower compared to Sydney.

Brisbane

• Median value: $761,739
• Monthly growth: 1.3%
• Quarterly growth: 3.9%
• Annual growth: 5.0%

Brisbane is on the cusp of a new peak, with a median value of $761,739. The city has seen significant growth in recent months.

Adelaide

• Median value: $691,591
• Monthly growth: 1.7%
• Quarterly growth: 4.3%
• Annual growth: 5.0%

Adelaide has reached all-time highs in property values, with a median value of $691,591. The city has experienced strong growth in recent months.

Perth

• Median value: $618,363
• Monthly growth: 1.3%
• Quarterly growth: 3.6%
• Annual growth: 8.8%

Perth has also reached all-time highs in property values, with a median value of $618,363. The city has seen significant growth in the past year.

Hobart, Darwin, and Canberra

Hobart, Darwin, and Canberra have experienced relatively flatter growth compared to other cities. Hobart has seen a slight decline in property values, while Darwin and Canberra have seen modest growth. However, these cities are still on an upward trajectory overall.

Combined Capitals and Combined Regional Areas

In general, the combined capital cities have experienced stronger growth compared to the combined regional areas. However, both markets have seen positive growth in recent months.

Units vs Houses

On an annual basis, units have generally outperformed houses in terms of growth. This is due to factors such as increased immigration, which boosts demand for units, and reduced borrowing power for buyers, leading them to shift their search towards more affordable options. However, the recent return of strong growth has been generally house-led, and it remains to be seen if this trend will continue into 2024.

Market Rebound

It’s important to note that the price declines in 2022 came after a historic period of growth, and in many cases, those losses have been recouped in the market rebound. This indicates a strong recovery in the Australian real estate market.

Pros and Cons of Waiting vs Selling Now

Now that we have a clear picture of the current state of the Australian real estate market, let’s explore the pros and cons of waiting versus selling now.

Waiting

Pros:
– Potential for higher property prices in the future
– More time to prepare for the sale and find a new property
– Opportunity to release more capital before retirement

Cons:
– Uncertainty in the market and potential for price fluctuations
– Delay in achieving your personal goals, such as upsizing or downsizing
– Risk of missing out on potential buyers in the current market

Selling Now

Pros:
– Opportunity to take advantage of the current market conditions and secure a good price for your property
– Ability to move forward with your personal circumstances, such as upsizing or downsizing
– Reduced risk of potential market downturns in the future

Cons:
– Potential for missing out on future price increases if the market continues to rise
– Limited time to prepare for the sale and find a new property

Ultimately, the decision to wait or sell now depends on your personal circumstances and goals. If you have an urgent need to move or are looking to release capital before retirement, selling now may be the best option. However, if you can afford to wait and believe that property prices will continue to rise, waiting may be a more favorable choice.

Economic Outlook for 2023 and beyond

Looking ahead, economists believe that the Australian real estate market will continue to experience growth in the remainder of 2023 and beyond. Factors such as low interest rates, population growth, and government incentives for first-time buyers are expected to contribute to this growth. However, it’s important to note that there are always potential risks and uncertainties in the market, such as changes in government policies or global economic conditions.

In conclusion, the decision to sell your home in Australia should take into account both the current market conditions and your own personal circumstances. While the market has rebounded strongly in recent months, it’s important to weigh the pros and cons of waiting versus selling now. Ultimately, the choice is yours and should align with your financial goals and timeline.