If you’ve been nervously debating whether to list your property or not, rest assured that the data is in – and it’s a seller’s market right now in Victoria.
Anyone who’s remotely familiar with the Australian property market knows that the scales often tip in favour of either buyers or sellers – and knowing the difference between the two is often key when it comes to getting the best bang for your buck.
In simple terms, a seller’s market is the term we use when demand exceeds supply, meaning vendors can usually sell their homes or properties quickly and at a favourable price. Time on the market tends to be low, settlement turnaround times faster, and auction clearing rates high. Median home and unit prices are often higher than usual, meaning that under these conditions, vendors are less likely to have to budge price as they simply have more negotiating power. It’s also not uncommon for properties to even sell above their price, as buyers are pitted against each other.
Sounds ideal, right? If you’re looking to sell your home, then it absolutely is. However, many Aussies have nervously been watching the property market thanks to the ongoing economic fallout of Covid-19, and have in effect been waiting in the wings for the dust to settle. The good news? The dust has indeed settled, and things are looking good for the Garden State.
The Victorian Property Market Outlook
Most of us are all too aware of the fact that Melbourne was affected by a double lockdown in 2020, which contributed to a 5.6% drop in values thanks to the Covid-19 related downturn. However, October signalled the end of one of the world’s toughest lockdowns, and prices finally stopped falling. Since that momentous occasion, Melbourne property prices have actually recovered by 2.1% overall.
As of February 2021 though, the past three months have seen market activity playing catch up, with home sales a whopping 26.1% higher than they were just one year ago. Across the sub-regions of Melbourne, buyers have been eager to escape the city in favour of a tree or seachange. It’s the Mornington Peninsula that stands out as one of the strongest markets nationally, with values surging 7.4% higher over the past three months to be 8% higher over the year. With house prices between 8-12% being predicted over the next twelve months in Melbourne’s inner fringe, it’s likely that the outer regions can expect some of the same levels of growth.
Five Tips To Make The Most Of A Seller’s Market
A bit of healthy competition is often a friend to anyone trying to sell their home or property, but there are a few do’s and don’ts to keep in mind when attempting to flip your house in a seller’s market.
Don’t Ignore Staging – Professional home styling or “staging” is designed to aesthetically present your property in the best possible light to potential buyers, and can be as simple as painting your walls or hanging some rented art work. Just because it’s a seller’s market doesn’t mean you can get lazy – presenting your home at it’s best will command a higher price.
Limit Showings – People tend to want what they think they can’t have. Don’t allow tours of your home at all hours of the day – if you can, try to restrict the hours and the days. This will force some buyers to tour when other buyers are also present, which should ideally spark a competitive nature and in turn, increase demand.
Be Reasonable – While it can be tempting to tack on an extra price than what you initially had in mind, being too greedy with your sale price can absolutely alienate buyers – there’s a fine line between getting the best bang for your buck versus taking the mickey. Consult with a professional property advisor to give you some realistic tips on how to achieve this.
Prepare For Multiple Offers – If you receive a lot of interest, carefully review each bid with your agent to determine which one is the best fit. The highest dollar amount doesn’t always win, as one buyer may offer more, but include several contingencies with their offer. On the other hand, another buyer might offer slightly less than the asking price, yet not ask for anything extra.
Be Ready To Move – In a seller’s market, many potential buyers are already exhausted with shopping around, making offers, and being continually knocked back. As a result, many chase a quick settlement period, and just want to be in their new home already. Be ready to rumble with little notice, as buyers may pass on your property if you ask for too much time.
Sourcing A Property Advisor In A Seller’s Market
A completely free service, Emergency Services Property Advisors provide property advisor services to Police, Fire, Ambulance and S.E.S personnel and their families right across Victoria.
Luke and the team at ESPA are passionate about providing support to some of Australia’s most valued public servants, and aim to provide tangible real estate advice to those in stressful positions with crazy hours at no extra cost to them. Along with key industry insights, ESPA also works with a broad range of service providers linked to the real estate industry such as conveyancers, trades, legal practitioners and mortgage brokers.
If you are an emergency services worker looking to potentially buy or sell property in the future, please get in touch with Emergency Services Property Advisors today to discuss how we can turn your real estate dreams into reality, or call Luke directly on 0414 757 705.
