Title: Should I Sell Now or Wait? – Junaid Ally

Title: Should I Sell Now or Wait? – Junaid Ally

Hello, I’m Junaid Ally from Ray White, and I’m here to tell you why it is better to sell your residential property in Brisbane now instead of waiting till the end of the year.

In this blog, I’ll talk about:

– The current market activity and how it affects your selling prospects

– The future prediction of supply and demand for properties in Brisbane

– The factors that are driving buyers to enter the market now

– The benefits of choosing Ray White as your trusted partner in selling your property

Current Market Activity

The Brisbane real estate market has been very strong during the pandemic and the start of 2022, but it has also seen its average house price go down this year by 0.8%, and likely another 9.4% in 2023. This means that if you wait too long to sell, you might miss out on getting a good price for your property.

The reason for this decline is that there are more properties on the market than buyers who can afford them. According to CoreLogic data, there were 26,651 properties listed for sale in Brisbane as of January 2023, which is a 12.6% increase from a year ago. This means that buyers have more options to choose from, and they can negotiate harder with sellers. They can take their time to inspect multiple properties and make lower offers than they would in a seller’s market.

They can also ask for more concessions or conditions from sellers, such as longer settlement periods or subject-to-sale clauses. This puts sellers at a disadvantage because they have less control over the outcome of their sale. They might have to accept lower offers than they expected or hoped for. They might also have to spend more money on marketing or staging their property to attract buyers’ attention. They might even have to withdraw their property from the market if they don’t receive any satisfactory offers.

Future Prediction

The situation is expected to get worse as more people’s fixed interest term starts ending this year. This will lead to more properties being put on the market by owners who want to avoid higher interest rates or refinance their loans. This will create an oversupply of properties, which will drive down prices even further. According to experts, about $300 billion worth of mortgages will come off fixed rates between now and December 2023. This represents about one-third of all outstanding mortgages in Australia.

Many borrowers who took advantage of low interest rates during the pandemic will face higher repayments when their fixed term ends. Some borrowers might be able to switch to another fixed rate or variable rate loan with their current lender or another lender. However, some borrowers might not qualify for refinancing due to stricter lending criteria or lower property values. In that case, they might decide to sell their property before they face financial stress or default on their loan. This means that there will be an influx of motivated sellers who want to sell quickly and avoid losing money on their property. This will add more pressure on prices as supply exceeds demand even further.

On the other hand, demand for properties is likely to decrease as well, as buyers become more cautious about taking on debt in a falling market. Some buyers might also postpone their purchase plans until they see signs of recovery or stability in the market. According to analysts, consumer confidence has fallen significantly since November 2022 due to rising inflation and interest rates expectations, as well as concerns about new variants of COVID-19. This has dampened buyer sentiment and reduced their willingness to commit to large purchases such as property. Some buyers might also wait for prices to drop further before they enter the market, hoping to get a better deal later.

However, this could be risky, as there is no guarantee that prices will continue to fall indefinitely. There could be external factors that could change the direction of the market, such as government intervention, vaccine rollout, or economic recovery. This means that if you wait till the end of the year to sell your property, you might face more competition from other sellers, and less interest from buyers. You might also have to lower your expectations and accept a lower offer than what you could get now.

Factors Driving Buyers

Despite these challenges, there are still some factors that are working in favour of sellers who act now. One of them is that rentals are so high in Brisbane that first home buyers have increased their presence in the market. They are taking advantage of low interest rates and government incentives to get into their own homes instead of paying rent.

According to data from Domain, the median rent for houses in Brisbane rose by 9.1% in 2022 to $500 per week, while the median rent for units rose by 6.7% to $400 per week. This means that renting is becoming more expensive and less affordable for many people.

On the other hand, buying a property is becoming more attractive and achievable for many renters, especially first home buyers. They can benefit from low interest rates that make mortgage repayments cheaper than rent in some cases. They can also access government schemes such as the First Home Loan Deposit Scheme and the First Home Super Saver Scheme that help them save for a deposit and reduce their borrowing costs.

These factors mean that there are still plenty of buyers who are looking for quality properties in Brisbane right now. If you have a well-presented property in a good location, you can attract these buyers and secure a good deal before they turn their attention elsewhere.

Another factor that is driving buyers to enter the market now is that Brisbane still offers better affordability and lifestyle than other capital cities like Sydney and Melbourne. Many people are moving or relocating to Brisbane for work or lifestyle reasons, especially after experiencing lockdowns or restrictions elsewhere.

According to data from ABS, Brisbane recorded a net interstate migration gain of 17,800 people in 2022-23, which was the highest among all capital cities. This means that more people moved to Brisbane than left it during this period.

Some of these people are professionals who can work remotely or have flexible arrangements with their employers. They choose Brisbane because it offers lower living costs, better climate, more space, and less congestion than other cities.

Some of these people are retirees who want to enjoy their golden years in a relaxed and sunny environment. They choose Brisbane because it offers easy access to amenities, services, and recreational activities, as well as proximity to popular destinations such as the Gold Coast and Sunshine Coast.

These factors mean that there is still strong demand for properties in Brisbane from interstate migrants who want to make it their new home. If you have a property that suits their needs and preferences, you can appeal to these buyers and sell your property quickly and profitably.

In Conclusion

Selling your residential property in Brisbane now is better than waiting till the end of the year because:

• The market is declining due to oversupply and underdemand
• The situation might worsen as more properties come on the market later this year the market now, such as high rents, low interest rates, government incentives, interstate migration, and Brisbane’s affordability and lifestyle

At Ray White we can help you sell your property quickly and profitably with our free appraisal, marketing plan, buyer database, professional team, and proven track record
If you are ready to sell your property or want to find out more about how we can help you, please contact us today.

We look forward to hearing from you soon.

Junaid Ally

Ray White

Phone: 0410 218 499

Email: junaid.ally@raywhite.com

Website: www.junaidally.com