Essential Tips to Get the Best Price for Your Home

Robert Heyward

As Australia’s spring selling season begins, sellers must prepare to stand out in a competitive market. Spring is the busiest time for real estate, with a 12% rise in new home listings compared to last year, according to PropTrack. Here are essential tips to help sellers secure the best price for their property.

Presentation Matters

Presentation is crucial in attracting potential buyers. Sarah Hackett of Place Estate Agents in Brisbane stresses the importance of decluttering, freshening up fixtures, and updating spaces with greenery and paint. Professional styling is a great investment, optimizing your home’s layout and flow. Outdoor areas, such as verandas and gardens, should also be made inviting, as they are key selling points.

Set the Right Price

With home price growth slowing, aligning seller and buyer expectations is essential. Thomas McGlynn, CEO of BresicWhitney in Sydney, notes that while sellers may have high hopes for their sale price, buyers are increasingly price-sensitive. Finding the right price balance is key to attracting interest without scaring off potential buyers.

Know Your Market

Understanding the market dynamics is critical. Michelle Kerr of Duet Property Group in Perth advises sellers to complete necessary repairs before listing, as buyers are less inclined to take on properties requiring major renovations. Given the ongoing challenges in the building industry, a move-in-ready home is more appealing.

Focus on the Three P’s

Andrew McCann, CEO of Jellis Craig in Melbourne, highlights the importance of price, presentation, and process in a successful sale. Spring brings more listings, giving sellers additional options to buy and sell within the same market. Ensuring your property is well-priced, presented, and managed will help you navigate the competitive season.

By focusing on presentation, setting a realistic price, and understanding the market, sellers can make the most of the spring selling season and secure the best price for their homes.

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Economy ‘On Life Support’ as Inflation and High Interest Rates Take Their Toll

Robert Heyward

 Australia’s economy continues to show signs of strain, with per capita GDP shrinking for the sixth consecutive quarter in June, according to the latest data from the Australian Bureau of Statistics (ABS). The economy experienced a 0.4% drop in per capita GDP, mirroring the March quarter decline and confirming ongoing concerns about a per capita recession. While the broader economy grew by 0.2% during the June quarter, this marks the slowest annual growth rate since 1991-92, excluding the pandemic years.

Stephen Smith, a partner at Deloitte Access Economics, noted that the figures are unsurprising to struggling households. “The economy remains on life support as inflationary pressures continue to bite,” he said, echoing sentiments that the current economic environment is far from stable.

Weak Household Demand and Inflationary Pressures

The ABS highlighted that subdued household demand was a key factor in the sluggish growth, with household consumption subtracting 0.1 percentage points from GDP this quarter. The ongoing impact of inflation and high interest rates has caused a significant reduction in discretionary spending, a trend likely to persist as households continue to tighten their budgets.

Smith suggested that while inflation remains a priority, there may be a shift in economic focus. “The economy has likely hit the bottom of the trough, and now the conversation needs to move beyond just inflation.”

Interest Rates: Have They Peaked?

With per capita economic growth contracting for six consecutive quarters, many economists believe that interest rates may have reached their peak. PropTrack economist Anne Flaherty said the data raises concerns. “We haven’t seen this level of persistent negative per capita growth in decades,” she noted.

Smith was more definitive in his view, stating that the ABS data indicates interest rates have peaked. All eyes are now on the Reserve Bank of Australia (RBA), with Flaherty suggesting that the central bank may hold rates steady in its next meeting. “While the expectation is that rates won’t move, it will be fascinating to see what the RBA highlights, given the broader economic challenges.”

Households Feeling the Squeeze

Essential spending, including rent and other housing-related costs, rose by 0.5% in the June quarter, underscoring the pressure on household budgets. Flaherty pointed out that most household income is being funnelled into higher rent and mortgage payments, leaving little room for savings or discretionary spending. “For first-home buyers, the outlook remains incredibly tough,” she said, adding that saving for a deposit is taking much longer due to these financial constraints.

Homeowners aren’t faring much better, with many finding they have little left after mortgage repayments and general living expenses. Flaherty warned that more households might continue to struggle as economic pressures mount.

Government Response: Data Highlights Pressure on Households

Treasurer Jim Chalmers acknowledged that the small uptick in GDP growth was driven by persistent but moderating inflation, as well as ongoing global uncertainties. “This data clearly shows the pressure households are under,” Chalmers said. He added that the government’s economic plan is focused on fighting inflation without causing further damage to an already weak economy.

However, shadow treasurer Angus Taylor was quick to criticise, accusing Chalmers of mismanaging inflation and the economy. Taylor argued that the treasurer’s focus on the RBA has detracted from addressing homegrown inflation, further worsening the economic situation. “This looks, feels, and smells like a recession,” Taylor said, pointing to the rising cost of living and sluggish economic growth as failures of Labor’s economic policies.

Signs of Optimism Amid Economic Woes

Despite the bleak data, Smith noted a few positive developments. The upcoming Stage 3 tax cuts are expected to increase real household income by around one percentage point in the coming year. Additionally, support payments, such as energy bill subsidies, will provide some relief to consumers, offering a potential boost to retail and wholesale industries.

On the housing front, there was a modest 0.1% increase in dwelling investment, driven by a 2.5% rise in new house completions. This is a welcome sign for the construction sector, which has faced challenges related to labour shortages and rising building costs.

Flaherty also struck a cautiously optimistic tone, noting that while the economic growth figures are meagre, they are still positive thanks to strong population growth. “More people means more consumption and demand, which is helping to keep the economy afloat,” she said.

Conclusion

Australia’s economy is navigating a challenging period, with inflation, high interest rates, and shrinking per capita GDP weighing heavily on households. While there are some signs of optimism, such as tax cuts and increased household support, the broader economic outlook remains uncertain as the RBA and the government work to strike a balance between managing inflation and supporting growth.

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Australia’s Ultimate Spring 2024 Property Guide: Is It Time to Buy?

As spring ushers in warmer weather, Australia’s property market is heating up with a surge in new home listings across the country. According to the latest PropTrack data, new home listings were up 12% in July compared to the same time last year. This increase in supply is creating a dynamic market environment, but with more buyers expected to enter the fray, competition for homes is likely to intensify.

National Overview: Market Dynamics

The spring selling season is set to be busier than usual, with an uplift in real estate activity predicted across all capital cities. PropTrack’s senior economist, Eleanor Creagh, noted that while there will be more choice for buyers, the number of active buyers in the market is also expected to rise, keeping the pressure on home prices and competition.

City-by-City Predictions:

Sydney

Sydney’s property market is anticipated to see a healthy number of new listings this spring. Despite economic pressures, demand from buyers remains strong, driving house prices up 6.77% year-on-year (YoY) to $1.429 million in July. Unit prices have increased 3.89% to $830,000 over the same period. However, buyers are becoming more selective, and sellers may need to adjust their expectations slightly to close deals.

Melbourne

Melbourne’s real estate market is expected to be balanced this spring, with new listings up 14.6% YoY in July. While house prices fell slightly by 1.01% to $912,000, while unit prices increased by 0.18% to $619,000 over the same period. The market is not expected to see huge capital gains, but sellers who price their properties fairly will likely find willing buyers.

Brisbane

Brisbane remains one of Australia’s hottest markets, with a 16.1% YoY increase in new listings. House prices surged by 13.42% to $951,000 in July, while unit prices increased by 16.85% to $663,000. The city is expected to see more homes hit the market this spring, but sellers will need to price their properties correctly to attract buyers amidst rising supply.

Adelaide

Adelaide’s property market is set to offer more choice for buyers this spring, with new listings up 17.4% YoY in July. House prices in the city rose by 15.09% to $819,000 , while unit prices increased by 12.44% to $599,000  reflecting strong demand. The increase in listings is expected to ease some of the constraints buyers have faced in recent months.

Perth

Perth’s market remains tight, despite a 15.3% YoY increase in new listings. Supply levels have been extremely low, and while spring will bring more homes to market, it won’t be enough to meet demand. House prices in Perth jumped by 23.19% to $790,000 in July, while unit prices increased by 19.13% to $530,000 driven by high population growth and a lack of quality rentals.

Hobart

Hobart continues to be a buyer-friendly market, with high listing numbers and declining home prices. New listings were up 5.5% YoY in July, but buyer demand has not kept pace, leading to weaker selling conditions. House prices fell by 2.4% to $717,000, while unit prices have decreased 0.9% to $552,000 over the same period offering opportunities for buyers looking to enter the market.

Darwin

Darwin’s property market is showing signs of increased activity, with new listings up 12% YoY in July. House prices in Darwin rose by 3.54% to $560,000, , while unit prices fell 2.76% to $382,000 . The city’s market is expected to pick up further as the spring selling season progresses.

Canberra

Canberra is offering more choice for homebuyers, with total listings up 33.7% YoY in July. Despite this, the market has seen weaker price performance, with house prices increasing only slightly by 0.94% to $980,000, while unit prices have declined 0.32% to $607,000.  Buyers in Canberra can expect a broader selection of properties this spring.

A Competitive Spring Ahead

With more properties hitting the market and buyer activity expected to rise, spring 2024 promises to be a competitive season for Australia’s real estate market. Buyers will benefit from increased choice, but they’ll need to act quickly as demand remains strong across most cities. Sellers, on the other hand, should be prepared to price their properties realistically to attract serious buyers in a market that is evolving with the changing season.

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