Over the last few weeks I’ve been meeting with and talking to a large number of Northern Beaches homeowners and the primary question they have been asking me is, “is 2021 the right time to sell?”.
Well, before I respond to the question, let’s take a step back and talk about what’s happening in the market locally.
Yes, the market is strong. Stock is low, interest rates are locked in at rock bottom and we have an influx of buyers wanting to secure property in the Upper Northern Beaches, so, for these reasons, it’s a red hot seller’s market.
A quick market snapshot –
- Open houses are seeing a spike in the inspection numbers
- 75.2% of sales enquiries in Pittwater came from outside the area
- Auction clearance rates in Sydney are at a 24 year high at 88%
- Many properties are selling prior with 45% in the last quarter across the Pittwater region selling before auction day.
- As far as prices go, properties are selling at record highs
- Very impressively the Avalon Beach 4 bedroom median house price has seen a growth of 27.5% in the last 12 months according to Domain.com.au compared with the modest growth 8.8% in Mona Vale.
If you are thinking of selling, now more than ever your agent is there to give you advice around the process, here are my thoughts that I hope would help you decide if 2021 is the right time to sell for you.
Firstly, it’s important to determine why you are selling. What is your purpose for selling?
Reasons to sell
Taking advantage of the hot market
You want to capitalise on the strength of the current market and take advantage of limited supply and a huge number of buyers looking to purchase a home. From a financial point of view, you are likely to get a record price, so now is a great time to sell.
Moving out of area / relocating
You may have decided to move out of the area, to be closer to family or loved ones, or, for a lifestyle change. If this is the case, the Northern Beaches is increasingly one of the most pricey areas in the country, so to sell up and cash in on the demand for houses here, you most likely will find yourself with a substantial budget for out of area markets such as interstate and more regional areas.
Change of Circumstance
Along with moving out of area, the main motivator for homeowners selling their property in the current market is deceased estates and separations. These circumstances can be stressful and complex for all involved. If you need advice on the process of selling under these circumstances or whether there is an advantage for you to sell in 2021’s market, don’t hesitate to call me.
You can financially benefit from downsizing in a seller’s market. Units and attached properties have not increased at the same rate as stand-alone houses, therefore you can sell your house for a high price and purchase a unit for a relatively stable price, with the one exception of Mona Vale which has seen rapid growth for units in 2020.
To sum it up, if you know why you are selling and where you are going, it’s a great time to sell.
Considerations and Questions
Where are you going?
The key question to ask yourself is “where am I going to go?” You may get a record price for your home, but when you sell, do you know where you will be?
My advice to you would be to think through your next steps carefully. In a seller’s markets, sometimes homeowners sell, and if they don’t buy back in swiftly, the market can get away from them. If you don’t have a plan well mapped out you might be stepping into the abyss… have a plan!
Think through – “If I sell for this price, what can I buy for that tomorrow?”. Determine your steps and know where you are going.
Are you buying before selling?
In a seller’s market, it’s not uncommon for sellers to buy before they put their house on the market. If you have secured your new home, you know exactly where you are going, on what date and the process of selling can be more streamlined and secure. Consider if purchasing before you sell is right for you…
Are you upsizing?
If the property you are in is no longer suitable, and can’t be upgraded or upsized through renovation, you may be looking for a new home locally. Yes, the competition is tight for upsizers in this market, however, it’s inevitable that some of us need more space, particularly those with a growing family. The good news is credit is cheap so your interest repayments will be at their lowest, and with lending restrictions easing this year there may be more credit available for upsizing in 2021. Here are my tips for you if you are embarking on buying and upsizing into the same area you are selling in the Upper Northern Beaches.
Ultimately, the right time to sell depends on your own circumstances and what’s right for you. Right now is a great time for sellers to cash in on the market’s record prices, especially if you know where you’re going.