Should you sell this Spring?

So far, 2022 hasn’t been a great year for Sydney’s property market, with the median price recording a decline every month since January.

But that doesn’t necessarily mean this is a bad time to sell your home. We look at why this Spring 2022 could actually be a good time to list your home.

The traditional reasons people sell in Spring

Spring is traditionally the selling season here on Sydney’s Upper North Shore. And why wouldn’t it be? The weather is warming up, people are starting to get out and about again after Winter, and the wonderful gardens of our local area are at their colourful best.

From a practical point of view, we also generally start seeing more people at open homes and more committed buyers, especially now Christmas and summer holidays are beginning to loom on the horizon. As a result, a lot of properties usually start to hit the market, with listings traditionally peaking in October and November, according to data from SQM Research.

What’s happening right now?

So far in early Spring 2022, we’re seeing a slight increase in the number of listings compared with Winter, but SQM Data also shows we haven’t yet seen the same rush of properties coming to sale that we usually do this time of year.

That’s largely because a lot of would-be vendors are becoming hesitant to list their home amid reports of falling prices and rising interest rates. Many of these have decided to hold off until the market turns and prices begin to rise again.

Buyers are usually sellers too

But the reality is, it’s during a market such as this one that a lot of canny property owners make their move. The main reason for this is that if you’re selling a home, you’ll usually need to find somewhere else to live – and that usually means buying another property.

The best time to make a move up the property ladder is actually often in a slower market like this one, because the gap between property prices narrows.

For example, say the home you’re currently in is worth $2 million, and you’re upgrading so the one you want to move into is worth $3.5 million – a difference of $1.5 million. If prices on both homes fall by -10%, the home you’re buying is $350,000 cheaper, while your current home will have lost $200,000 in value. That means the gap between prices is suddenly $150,000 less.

On top of this, there is less competition in the market right now, so you’re more likely to be able to secure the perfect next home than you were when prices were rising rapidly.

Gains over 2021

The key, however, is to be realistic about the value of your own home in today’s home, and be prepared for the fact that the extraordinary conditions of 2021 are well behind us. So, while many more properties are passing in at auction, the reality is that most still sell. It’s simply that you can’t expect – as a matter of routine – to have multiple parties bidding frantically to secure your home. Although it is still definitely happening for some properties.

It also pays to remember, 2022’s price falls haven’t even come close to wiping away 2021’s price gains. Throughout the pandemic, Sydney’s median property price rose 27.7%, according to Domain. Since prices started falling in February 2022, they have only lost -7.4%. Anyone who has owned Sydney property since COVID struck is likely to have experienced a significant boost in both the value of their home and the equity they hold in it.

If you’re one of them, you should still be in a strong position to make your next property move.

The state of the Upper North Shore market right now is good

Some suburbs here on the Upper North Shore experienced even more significant price gains during Sydney’s property boom, and haven’t yet experienced the same, or significant, price falls.

Realestate.com.au data shows Killara’s median house price of $4,361,500 is still 19% higher than the same time last year. Next door in Lindfield, the median house price of $3,960,000 is 25.5% higher than the same time last year. In Hornsby Shire, suburbs including Berowra (up 22.3%) Asquith (up 28.7%) and Mt Colah (up 28.4%) have experienced tremendous gains.

In short, you’ll still be in a much better position than you were 12 months ago, when it comes to your sale, and you’ll have a far greater choice of properties from which to buy.

Property is a long-term play

Finally, it should go without saying that – unless you intend to ‘flip’ the property you buy – you’reprobably in it for the long term. A 2019 CoreLogic study found that the average Sydneysider owned a house for nine years, and a unit for 7.6 years.

Over that time, the property market is likely to experience several short-term rises and falls. However, the history of the Sydney property market shows that the long-term trend is upwards.

With that in mind, it’s more important that you sell and buy and a time that suits you and your lifestyle rather than trying to time the market to take advantage of any short-lived rises or falls.

Want more?

If you’re interested in finding out more about the property market in Ku-ring-gai or Hornsby Shire, get in touch.

Disclaimer

DiJones Real Estate, together with their directors, officers, employees and agents have used their best endeavours to ensure the information passed on in this document is accurate. However, you must make your own enquiries in relation to the information contained in this document and seek advice from your financial advisor, broker or accountant to ascertain its application to your circumstances.

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