When time is right, sell

Herald Sun - Property - - NEWS - PETER FARAGO

SPRING and au­tumn might be the tra­di­tional sell­ing sea­sons in Mel­bourne’s real es­tate mar­ket, but ex­perts say there are other times to tip the bal­ance in sellers’ favour.

The laws of sup­ply and de­mand that dic­tate the price of goods in mod­ern eco­nom­ics also ap­ply to real es­tate. But in most cases, the only real im­pact sellers can make on that equa­tion is when they put their house up for sale.

Wake­lin Prop­erty Ad­vi­sory di­rec­tor Richard Wake­lin said while sellers needed to weigh up the es­ti­mate of value, mar­ket­ing and pre­sen­ta­tion, choice of agent and method of sale, the tim­ing of a sale was per­haps the most im­por­tant fac­tor in driv­ing the high­est sell­ing price.

Se­lect­ing the right time, when there were fewer prop­er­ties on the mar­ket, would give them the best chance of cre­at­ing heated com­pe­ti­tion for their home, coax­ing buy­ers to of­fer a higher price, he said.

“The plan wher­ever pos­si­ble, is to sell when sup­ply lev­els are at their low­est and to buy when the sup­ply lev­els are high,” Mr Wake­lin said.

CoreLogic RP Data’s track­ing of Mel­bourne sup­ply for the past 12 months shows the vol­ume of prop­er­ties for sale peaked in late Novem­ber, when about 32,500 prop­er­ties were on the mar­ket. But list­ings also peaked in late au­tumn, while the troughs were in Jan­uary and dur­ing win­ter.

Se­nior re­searcher Cameron Kusher said the num­ber of new list­ings in Fe­bru­ary was quite a bit higher than the same time last year. “Over the past 28 days there’s been 8574 new prop­erty list­ings and that’s ac­tu­ally 9.8 per cent higher than at the same time last year,” he said.

How­ever, he said the num­ber of new list­ings was still lower than the spring sell­ing sea­son late last year when they climbed to 10,500 in midNovem­ber.

Mel­bourne’s over­all list­ings were lower com­pared to the same time last year, with 28,084 on the mar­ket, a de­crease of 0.4 per cent.

But auc­tion clear­ance rates show there are plenty of buy­ers in the mar­ket.

Mr Wake­lin said the surge in list­ings co­in­cided with a dropoff in mar­ket per­for­mance, par­tic­u­larly in auc­tion clear­ance rates. He said many po­ten­tial sellers wanted to wait and see how the mar­ket was per­form­ing be­fore com­mit­ting, lead­ing to a late-sea­son glut of prop­er­ties on the mar­ket.

For buy­ers mulling over head­ing to auc­tion, Mr Wake­lin sug­gested early May.

“It may mean their prop­erty is (ini­tially) listed on the week­end when there is an An­zac pub­lic hol­i­day but you won’t be com­pet­ing with the com­par­a­tively large sup­ply of late May,” he said.

Har­courts, Thomas­town, Ep­ping and South Mo­rang di­rec­tor Tony Lom­bardi said sellers needed to think out­side the box to tip the scales in their favour.

“Around March to April, just be­fore Easter, is gen­er­ally a pretty good time,” he said.

“You’re com­ing a lit­tle bit out of sum­mer, but it’s a lit­tle bit wet so the gar­den is still look­ing quite good. And you’re cap­i­tal­is­ing on a pretty ex­cit­ing time in terms of de­mand be­cause quite a lot of buy­ers have a new lease on life in the new year and want to try to buy a new place.”

Mr Lom­bardi said a prop­erty’s key sell­ing fea­tures could dic­tate the best time to sell. “A prop­erty on the beach that’s got an amaz­ing view, it would be a no-brainer that spring or sum­mer would be good,” he said.

“But a prop­erty that’s got a large fire­place and it might have some raw brick or some re­ally nice re­claimed tim­ber through­out, you would look at go­ing some­time in the middle of win­ter.”

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