Considering Selling in 2024? Now Might Be the Perfect Time!
As we enter the final months of 2024, the Australian property market may be signalling a potential shift that makes it an opportune time to consider selling your home. Over the past few years, the market has strongly favoured sellers, but recent trends suggest that change may be on the horizon.
During the pandemic, property prices surged due to a combination of limited supply, slowed construction, and increased migration. Despite rising interest rates throughout 2023 and into early 2024, prices continued their upward trajectory. However, signs in the latter half of 2024 point to a possible market adjustment.
Current Property Market Trends in Australia
According to CoreLogic’s early August report, overall home values increased by 0.5% in July. However, the latest quarterly data indicates a decline in home prices in several major cities.
Melbourne recorded a 0.9% drop in home values, while Hobart and Darwin saw decreases of 0.8% and 0.3%, respectively. Sydney’s growth has slowed to 1.1%, a stark contrast to the 5% quarterly rise witnessed a year ago.
In contrast, Perth, Adelaide, and Brisbane continue to experience growth, driven by low supply and high demand. These cities are catching up to the higher price levels of other capitals, with quarterly growth rates ranging from 3.8% to 6.2%.
Is the Market Shifting in Favor of Buyers?
The current market dynamics are complex, so the answer is both “yes and no.”
A buyer’s market occurs when the number of homes available for sale exceeds the number of buyers, resulting in lower property prices and giving buyers more leverage in negotiations. In such a market, buyers have the luxury of being selective, while sellers may face longer wait times for offers and fewer competitive bids.
However, whether a specific area is a buyer’s market depends on various factors such as location, property type, and competition. For example, unit prices are on the rise as some buyers find themselves priced out of their preferred homes. Consequently, a suburb might be a seller’s market for units but a buyer’s market for houses.
Australia’s current market is described as “multi-speed,” with different trends unfolding in various regions.
Should You Consider Selling Now?
CoreLogic notes that “the underlying mismatch between housing supply and demand looks set to support housing prices through the second half of the year, but there does seem to be some rebalancing underway.”
Given these market conditions, now could be an ideal time to sell your home, particularly if you’re in a region where the market might soon lose momentum. Selling now could allow you to maximise your return, and when you’re ready to buy again, you may find more favourable prices.
If you’re uncertain about whether now is the right time to sell, consulting with a real estate professional who understands your local market is a wise step. They can offer personalised advice based on your property and current market conditions.
Considering selling before the end of 2024? Contact OBrien Real Estate today for expert guidance on listing your home.
