Have you have been thinking about selling but are concerned that you may have missed the market?
If so, then you need to read this.
It’s no secret that the property market, like any market, is cyclical. It rises and falls, stabilises, and then rises and falls all over again. It is the forces of supply and demand which causes it to do so; Boom markets occur when surges in demand and shortages of supply intersect, whereas subsequent “bust” happens when demand dries up and supply suddenly spikes. When supply and demand settle to normal levels, the market evens out. This is the way it has always been.
Approaching the end of 2022, in Queensland we have just come out of one of the most incredible growth periods that have ever been seen, with some areas in South East Queensland in particular seeing price increases of up to 35% in the space of 18 months. The result of a sudden increase in demand due to an influx of interstate migration and first home buyer interest, this post Covid “boom” has seen property prices skyrocket like never before, but a series of interest rate rises, out of control inflation and an increasingly unstable political and financial climate has put the brakes on hard – And with more rate rises on the horizon, this trend is likely to continue.
For those looking to sell, this might seem like bad news – But there is a silver lining. While the market has certainly changed and median prices appear to have dropped from where they were earlier in the year, they are still far higher than they were pre-Covid. Which means as a seller, you may have missed the absolute peak of the market, but there’s still a chance to get a comparatively high price for your property if you move quickly.
Imagine the market cycle is like a clock – With the peak represented by 12 o’clock and the trough represented by 6 o’clock. When’s the best time to sell? 12 o’clock, obviously. But let’s say you miss 12 o’clock, when’s the next best time to sell? The answer to that question would be 1 o’clock – Which is where we are now.
You see, prices may not be as good as they were at 12 o’clock (which occurred some time between March and May of this year, but they are still far better than they will be at 2 o’clock, or worse yet, 3, 4 or even 6 o’clock. There is little to be gained by waiting – prices will only get lower, and if you’re thinking to wait for 12 o’clock to come around again, then strap yourself in because traditionally speaking, the market moves in 7–10-year cycles. It is possible (even likely) that we could be well into the next decade before we see another boom period like the last one. Are you willing (or even able) to wait that long?
There are still willing buyers in the market right now, but they could very well dwindle in numbers over the coming months due to further interest rate pressure and cost of living increases. With this in mind, the only thing to be gained by waiting for the clock to strike 6 is to find out how much money you can lose.
If you are planning to sell, get your house on the market now.
‘Til next time, ciao 😊