By nature, I’m cynical. I hear the nation’s not officially in recession and I’ve been reading the reports about price growth in Brisbane property. RP Data’s Tim Lawless said yesterday the “latest results herald a national residential market recovery.” But after owning my St Lucia apartment for 22 years I was always going to be slow in making the decision to sell.
I grew up believing, and still do, that you should never sell. Back in 1987 I got a first home grant of $4,000 from the PM (thanks, wherever you are now Bob!) and the capital gain’s been pretty tidy in that time. It’s good real estate. But this unofficial recession’s opened some opportunities to expand the business and I could do with the funds. And now is looking like a great time to sell.
My main reason to sell now? There’s a shortage of property on the market. Not a massive undersupply, and for the dearer price points this probably doesn’t apply. But for my place at sub-$400,000 the sellers I’m competing with are very low in number. Scarce, in fact. So my sale price is likely to be a fair bit higher than if I’d sold this time last year (provided my agent here does their job!)
In recent weeks our agency’s made one sale at full price and another at more than full price. First home buyers are still busy out there and with good reason – interest rates are very cheap and the massive job losses haven’t happened. Sentiment seems to be turning as journos make a running story of good news and confidence is bubbling up.
Properties are selling. Some home owners have worked out that getting a bigger home and upgrading in a slow market can save you money. How? If prices were down 10% your $500,000 home has dropped $50,000, but if you’re buying an $800,000 place it’s down $80,000. You might be $30,000 better off than if you’d traded up during the boom. And right now the lower end’s prices are strong, so for many the trade up equation is even better.
Regardless of economic news the world goes about its business. People are born and people die, couples join and split and the normal demands affecting the real estate market continue. I don’t think the market’s on fire but I do think some home owners are missing a good chance to sell.
This time it won’t be me.
Managing Director – Bees Nees City Realty