Is Selling Your Home in 2023 a Good Idea?

It’s no secret that over the last 12 months, the Sydney property market has experienced some major adjustments. The combination of climbing interest rates, higher inflation, Ukraine war, and general consumer sentiment has culminated in a major slow down and decline in property prices.

This decline, which was not expected to occur until the second half of 2023, has in fact been fast tracked thanks to the sooner than expected hike in interest rates.

Although the band aid has now been ripped off, it actually means we are further ahead in the cycle than previously predicted.?This combined with a number of other factors is why we believe selling your home in 2023 might be a good idea. We share 3 of these insights below:

1. Stamp Duty Reforms

The overhaul of NSW stamp duty is an exciting step forward which will positively impact a large portion of Sydney’s first home buyers. Under the First Home Buyer’s Choice scheme, people purchasing their first home will now be able to choose between paying an annual land tax or an upfront stamp duty.

This is a long awaited reform that will finally provide first home buyers with a choice, helping thousands of people shave around two years off the time needed to save for a deposit. The legislation covers all new or existing homes valued up to $1.5 million.

Due to officially take effect from 16 January 2023, eligible first home buyers who exchange sales contracts after this date will have the option to pay no stamp duty for their purchase, and instead opt in to the annual property tax.

Thanks to this initiative, we will see an increase in demand from first home buyers for properties valued up to $1.5 million. Increased demand = increased competition which results in higher prices. So if your property is worth say $1.3 million, increased competition could potentially lift it’s value to $1.35 million.

We welcome this reform with open arms as it is a?WIN/WIN?for everyone!

2. Flow on effect to higher valued homes

The most common method of establishing what your home is worth is by using the comparable sales method. This is where you compare other properties with similar characteristic in your neighbourhood to your own. Those homes sold within the preceding 3 months are the best examples to use for this method and will provide you with the most accurate estimate of what you might achieve for your own home.

It’s safe to say that if other properties that are similar in number of bedrooms, bathrooms, land size etc are selling at higher level thanks to the increased competition among first home buyers, this will in turn cause a ripple or flow on effect to the values of other homes in the area including yours. As the old saying goes – ‘a rising tide lifts all boats’ – the same can be said for property prices.

We could therefore begin to see an uplift effect on property values between $1.5 million to $2 million within the first half of next year with a continued flow on effect for higher valued homes toward the middle and end of 2023.

3.?Limited supply and slowdown in interest rates

With all the uncertainty and doom and gloom touted by the media, many homeowners chose to hold off selling their home this year which resulted in a lack of supply. It has been this supply shortage that has kept the property market afloat. The actual statistics for declining prices has not been as devastating as predicted. It’s true that certain parts of Sydney have felt the downturn the most, however these are typically those areas that experienced the biggest gains during the pandemic-led boom. Sydney is made up of many micro markets – all which move to the beat of their own drum. What happens in one micro market may be the opposite to what is happening in another.

At this stage it is difficult to say whether 2023 will see an increase in the supply of properties for sale across the board. Many agents we speak to already have home sellers lined up to sell their home in the new year.?With the worst of the interest rate rises behind us, 2023 could see Sydney begin it’s recovery phase of the cycle.?

If you’re thinking of selling in 2023 and ready to start planning, we’re here and ready to assist you.

Before you call in the local agents, get in touch to find out how selling with us is more lucrative, stress free and a safer way to ensure your interests are protected and you don’t get taken advantage of.

Find out more about our Vendor Advocate service?here?or book a call with us?here?at a time that suits you.

What happened this week

Another week of average preliminary auction clearance rates indicates activity levels are holding steady despite yet another rate rise. Sydney's usual pre-Christmas rush is more like a cautious 'wait and see' approach from both buyer's and seller's alike. Good quality family homes are still attracting strong interest from upsizers looking to capitalise on the decline in property prices and we expect this trend to continue into the New Year.

If you're thinking of selling, prices are generally still up on pre-pandemic levels and now is the time to start planning.

We're here to help you maximise your sale price in 2023.

Get in touch with us today…

Spotlight on our Industry Partners

Property Styling is all about first impressions and at Urban Chic we take pride in styling our clients' properties to showcase their full potential. We offer bespoke styling, tailored to Sydney's varied housing demographic and vast architectural styles. With an aim to increase buyer interest, reduce time to sell and maximise the sale price, we are industry leaders and have more 5 star Google reviews that any other styling company.

With a career spanning over 10 years in both Sydney and Melbourne, Anna Farey has a keen eye for detail and is known to go the extra mile to ensure the property is perfectly presented.

Visit their website to find out more?HERE

Our Proven 3 Step Vendor Advocate Process

If you’re stressed and overwhelmed at the thought of selling your home or simply don’t know where to start, it’s worth watching our short video.

A Vendor Advocate will save you time, money and sleepless nights by assisting with everything from preparing your property for sale to choosing the right real estate agent. And it doesn't cost you any extra - watch now to find out how….

I love using the knowledge I've gained during my time as a real estate agent, to help others navigate the buying and selling process. If you'd like some expert advice from a property advocate who genuinely has your best interests at heart, I'd love to hear from you.

Find a suitable time to book a call via my?calendar.

Until next time...

Sincerely,

Kathryn ??