Why now might just be the best time to sell your home?
Category Advice
The property market's performance has been a light at the end of the tunnel for some during the pandemic - but sellers who are holding out for a price increase might want to strike now more than ever. Here's what the experts suggest.
The residential property market inevitably moves through cycles and homeowners are always asking whether now is the right time to sell and move, or not. It is a big decision to sell a property and move on but with the activity in the residential property market, it is worth considering. Conditions such as low interest rates and easier financing are encouraging buyers so this is an opportunity to find a buyer. Chat to your real estate agent for advice if you are unsure, make sure you have your property accurately valued so you can make smart financial decisions, and if all else fails, follow your gut instinct.
First-time buyers remain a formidable driver of the residential property market's remarkable recovery, with the average purchase price of a first-time home sitting at around R1 million for several months now. This applies to buyers of younger than 30 years as well, suggesting that the lower-interest rates have made property more accessible. After months of steady growth, the average purchase price of a first-time home buyer hit the R1 million mark in October last year. Considering that this was shortly after the easing of lockdown restrictions, the sustained upward price trajectory suggests that lower interest rates have certainly been a motivating factor.
If you're on the fence about selling your home, there are a number of reasons why now may be the right time to get your property listed and on the market.
1. The market is slowly shifting
The residential property market has been under enormous pressure in the last few years and despite the hardships brought about by the COVID pandemic, it also brought with it a light at the end of the tunnel. Post-hard lockdown, property sales spiked all over the country, driven by low interest rates, pent up demand and easier financing from the banks. The market continues to move and buyers are out there looking for properties to purchase, resulting in a slow shift from a buyers to a sellers' market. Economically, house prices have not necessarily grown proportionally with market activity, so sellers still need to price their properties realistically. This may be the window of opportunity you have been looking for so strike while the iron is hot.
2. Assess your costs
You may think holding out for a while longer could result in a higher price for your property down the line but you may want have to wait longer than you think to recoup your expenses and achieve your desired price. If you are holding out and hoping for your house to increase in value, assess how that increase balances with your expenses living there. If your bond is high and your living costs exceed the percentage of growth you were hoping for, ask yourself if over time it is really worthwhile or affordable to hang on to your home.
3. Changing work/life circumstances
Buyers are looking for properties that will meet the needs of their new work/life realities. With remote working, schooling and studying becoming the norm, new circumstances have created new interest in a variety of properties. There is an increased demand for larger homes as dual living and work-from-home trends continue. For those nearing retirement or needing to cut costs, it also a good time to downscale and reduce expenses and maintenance where you can.
4. Location, location, location
Since you bought your current home, your neighbourhood may no longer fit your changing lifestyle or the need to live close to work and school may no longer be necessary. Many buyers are families and couples who have lived closer to the city for easier commutes to work and school are now able to look further afield and afford to buy larger homes. It may be your turn to move on to your next dream - weigh up the pros and cons to decide if leaving or staying put makes the most sense.
5. Seven-Year Property Itch
The seven-year property itch is a reality and its common knowledge that it generally takes 7-10 years of owning a property before it is worth selling. Of course, drastic circumstances may see that time cut short, but if you are thinking of selling and you have been there for at least seven years, it may comfort you to know that statistically, it won't be a bad idea.
Author: Property 24 - Extracts
