Considerations when selling in the current market...

If you were considering selling your property this time last year, many homeowners were choosing to go to auction due to heightened demand in a competitive market.

However, with Australia’s housing market slowing due to rising inflation, weaker consumer confidence in parts, and increases to rates, this is creating some tension in the current property market and sales growth.

According to CoreLogic, the combined capitals recently recorded a preliminary auction clearance rate below 60 per cent – the weakest result since April 2020 – with the number of homes taken to auction also down by 20 per cent.

Adelaide’s property market has moderated slightly with an auction clearance rate of 69.7 per cent, compared to 81.8 per cent at the same time last year.

When it comes to selling, you might now be asking the question, have I missed the boat While this factor can be broadly dependent on the type of property and where it is located, recent data from BankSA economists show that Adelaide’s property market has continued to report robust growth of 1.3% in June. While Adelaide has still recorded the strongest quarterly growth amongst all capitals at 5.1 per cent, it has pulled back slightly compared to the 5.7 percent growth from the three months to May.

So, what does this easing of the market mean for someone looking to sell? If auction is not your preference, there are several options that could work in your favour. This includes sale by private treaty where you will set a price for the property. Expressions of interest (EOI) could be another good option, where buyers are invited to submit an offer by a specified time and date – research suggests this could yield similar results of an auction without the likely stress of an auction day.

And while the data shows that auction clearance rates have decreased, you may still determine that this is the best method of sale for you however, it is best to be prepared for potential post-auction negotiations if the property is passed in.

It is important to consider all your options when it comes to selling your property in the current market. This includes sourcing advice from an experienced real estate agent who will be able to guide you on determining the best method of sale for your property, and one that favors your needs.

At BankSA we understand the local market and can help you to be ready to discuss your financial options when you do buy and sell.

Originally featured in The Advertiser on Saturday 6th of August 2022.