By Paul McAllister
If you’re thinking of selling but can’t decide whether to list with an agent this year or early in the New Year there are some unusual factors to consider as 2016 draws to a close.
‘In my experience, this is the time of year when people who are considering selling start worrying that it’s too close to Christmas to list their property for sale,’
‘And of course they’re right to be concerned about the slow down in the market that traditionally takes place over the Christmas and New Year period. However, last year we were busy handling buyer enquiry right through the holiday period and, with stock levels far below normal levels nationally, we expect to be even busier this year.’
Typically, home sellers get the best response to their property when there are few other properties for sale to compete with. Buyers are quick to make offers and keen to negotiate acceptable prices because they’re keen to secure a new home before listings dry up over the holidays.
Homeowners thinking of selling should definitely be talking to agents now because preparing a home for sale, completing photography, and obtaining the necessary legal documents for an agent to start work all takes time.
‘I’m anticipating increased stock levels in late January to early February because it’s currently a seller’s market and vendors have been holding back throughout 2016. The real estate market is cyclical and we generally see bounces in stock levels after periods of shortages’.
‘Another factor that’s hard to predict but likely to influence market conditions in 2017 is the “Trump Factor”. We’ve already seen America’s largest non-bank lender start to lift fixed rate mortgages in anticipation of the US turning on the debt tap to fund infrastructure builds. This is likely to drive interest rates up and Australia may not be immune.
‘If interest rates rise, the willingness and ability of buyers to meet homeowners’ price expectations will begin to erode. If the number of homes for sale increases, and it typically does in the New Year, market dynamics could shift more in favour of buyers’.
Confidence is everything in the real estate marketplace and uncertainty about USA policy under President-elect, Donald Trump, could influence overall market conditions in 2017.