With positive news of more buyers entering the housing market in our major cities, this winter could be an opportune time to make your next property move while prices are still lower.
Many of the forces that have held the property market at bay are set to change direction. Mortgages are set to be easier to obtain on the back of proposed relaxation of loan-to-value ratios. Banks are very keen to get back to lending after a period of low activity.
With interest rates levelling out and net migration at high levels, many are expecting a turnaround in the market this Spring/Summer and a significant increase in activity across the country. Over the past month we have seen a rise in the number of first home buyers, some who are remote workers moving from the city, making enquiries, and coming to our open homes. We have also seen a pick-up in interest in some higher end properties that have been on the market for some time.
People who have their ducks in a row with finance are in the best position to take advantage of this window of opportunity to be ahead of the pack. Navigating the lending environment can be a minefield and getting expert help from a broker can save a lot of headaches. (See below for links to our local brokers or the latest market update from economist Tony Alexander)
Another problem facing entry level buyers is that there are still relatively low stock levels in the lower and mid-price brackets. There are 100 homes priced over $1 million on the market and 68 under $1million. Only 15 under $700,000 where most entry level buyers are searching, so there is less of a choice. However, that is a lot more choice than was available 2 years ago when the market was hot.
Many sellers simply do not appreciate the advantages of having their houses on the market in winter. They wait until Spring when the gardens look perfect, and the sun is shining. The flaw to this reasoning is that the property market is subject to the same principles of supply and demand as any other market. When people hold off from listing, the supply increases all at once, which means lower pressure on buyers.
Our experience shows that buyers are searching steadily all year around except for the slow down over the Xmas holiday period and the boost in February March when people return from their breaks.
In summary, to attract the most buyers, it is better to sell when there is less competition – and that’s often in winter.
Here are some top tips for selling in winter:
- Make sure your home is warm for viewings. Nothing puts people off more than a cold home.
- Keep your home ventilated. First impressions are important, and the musty smell of a damp home is sure to send buyers off to their next choice.
- Pleasant smells can work in your favour. The smell of coffee or fresh baking or light up some of your favourite scented candles.
- Empty houses feel quite stark, particularly in winter. Staging can provide a feeling of homeliness.
- The important thing is to be there when others are not. Higher demand and lower supply is the best situation for vendors.
Local Mortgage Brokers:
