30th September 2020 / Sarah Lowry: 5 Reasons to Sell Your Property this Spring

Spring is traditionally known as the key selling season of the year. Although the real estate landscape looks a lot different in 2020, we do know that the combination of an extended lockdown and extremely low stock levels will create an increase in both activity and competition.

1) Improved Weather Conditions

It could be easy to disregard the impact of the sun shining and the sight of nice green gardens and flowers in bloom, but this time of year has traditionally proven to be a popular time to sell, in part for this reason. After weeks in Stage 4 lockdown restrictions, the value and appreciation of pleasant weather conditions has never had greater impact. Further, people will be much more energised and positive. It's also a lot easier to create street appeal!

2) Buyer Activity and Interest Remains Strong

Data from realestate.com.au showed us that throughout July, confidence in the market continued to increase. As restrictions began to ease and some semblance of normality returned, overall enquiry in Victoria increased between June and July, indicating that buyer interest also returned. In fact, there was even an 11 per cent uplift in total site visits from Victoria in the first week of July. As Stage 4 restrictions ease, we have confidence that the market will bounce back once again.

3) Record Low Interest Rates

This Spring, we are still enjoying the impact of an official cash rate at the record low of 0.25 per cent, after two rate cuts in March 2020. The cost of servicing a mortgage debt has never been lower, which is an enticing opportunity for potential buyers. It also means that the borrowing costs for lenders are lower, which could lead to their willingness and ability to lend more money for longer.

4) Positive Signs in the Victorian Property Market

The REIV's Residential Market Index (RMX) is a residential property price index (RPPI) designed to provide a current, simple insight into real property price trends in Victoria. An RPPI measures the price change of the stock of residential dwellings over time.

In its August 2020 Research Bulletin. the REIV reported that the RMX has continued its upward trend since mid-May, demonstrating that whilst Stage 4 restrictions have impacted the number of transactions occuring, they have had little impact on the Victorian property market. In the four weeks to August 16, the RMX for Victoria rose by 1.6 per cent to 130.7. The house price index fell by 1.5 per cent to 130.9 while the unit price index rose by 2.2 per cent to 129.8 over the same period.

5) We Have Had Time to Spring Clean!

With a much slower pace of life and more time on our hands due to the pandemic, there is no excuse not to give our homes a decent Spring clean! As the weather continues to improve, there's never been a better time to get your garden in tip-top shape and decluttering is always a good idea.

Contact us today for a complimentary update from your Fletchers local area expert on your own home or to discuss the options available to you.