Survey shows property owners will sell
The Australian property market is booming and, at last sellers are losing their reluctance to sell. Believing that the country has weathered the worst of the Covid-19 pandemic sellers are entering the property market.
Key interest rates are at an all-time low and likely to stay that way for the foreseeable future. This, along with the increase in property prices, is driving the increase in sales.
Many people chose not to sell in 2020 as the pandemic led to uncertainty. Now that the economy has recovered and the pandemic settled down, sellers are coming out in their numbers. As long as the situation continues the stock of houses on the market is likely to grow.
Realestate.com.au conducted a survey of 6700 citizens in December 2020. They found that people were more prepared to sell their homes now that the circumstances had improved.
By the time the research was conducted Australians had weathered the worst of the lockdown. Only a few circuit breaker lockdowns have been necessary since.
The improved situation had prompted a quarter of the sellers who had been thinking of selling to actually put their houses on the market.
19% of the respondents said that changed life circumstances including working from home have made it possible for them to change the location in which they live. This has prompted them to put their properties up for sale.
The number of people selling or thinking about it is much in line with numbers from the same time in 2019. As long as the Covid-19 infections remain under control in Australia, people listing their properties will continue to rise in 2021.
The number of properties for sale is already rising and inventories increasing but it still doesn’t meet demand.
Demand for properties in lifestyle locations rose during the pandemic but this isn’t what is currently driving the property market. It is low interest rates and improved economic conditions that now drive the market. These conditions have prompted up to 40% of property owners to consider selling.
To buy or sell first?
Whether to buy or sell first is a dilemma that many homeowners face. The survey showed that around half would prefer to sell before they buy. 31% would buy before they sell. This figure was just 21% in 2019.
The competitive property market, higher saving and lower interest rates are driving this trend as people know that they can sell their property quickly. On the other hand, they may battle to find a suitable house to buy.
Buyers are in more of a hurry than sellers
According to a recent Westpac survey, many buyers hesitate to sell as they worry that they may not find a suitable replacement at the right price.
As property prices rise, buyers are looking to get into the market before prices rise still further, whereas sellers fear selling and then having to buy when prices peak.
Property prices have risen and will continue to rise into 2022 at a forecast 20%. This has made it very difficult for sellers and their agents to settle on a reasonable time and price to sell. In particular, people over the age of 60 battle with this question.
Real estate agents will have to guide these people in making these difficult decisions.