WITH listings low and house prices at an all time high, the age old question of whether you should buy or sell first has become particularly relevant.
Ray White Chief Economist Nerida Conisbee said selling your home now could mean quite a prolonged period between finding your next property.“Selling a home and then buying is easier to organise. Once you have sold your home, you know exactly what the budget is for your new property and you don’t have to worry about bridging finance for your next home,” Ms Conisbee said.“But right now, property markets are very hot and competition for properties is fierce.“Overall however, in this strong market it does make sense to buy before selling but there are some things to consider so that you don’t get caught out by a change in market conditions.”Ms Conisbee followed this up saying, ideally, you want to sell not long after you buy so having your existing property ready for sale is important.“Speak to an agent to understand the price you could reasonably expect from the property and make sure that the property is as close to market ready as possible. This includes having repairs undertaken, clearing out junk and ensuring the garden looks great,” she said.“And speak to a mortgage broker about the availability and cost of bridging finance.“Finally, to help with the cost of finance, look to get a long settlement period on the house you buy but a shorter settlement period on the house you are selling. By doing this, there may be no need for bridging finance.”Selling through auction can also put pressure on vendors whose campaigns are traditionally shorter compared to private sales. However, Ray White data in July found that on average those auction vendors made 12.46 per cent more on their sale than if they’d sold prior - putting them in a better situation when buying.Despite rolling lockdowns across the country, July was still a great time for vendors to take their properties to auction. The Ray White Group booked a 77 per cent national clearance rate and it seems online auctions proved not to be a barrier for buyers with 6.6 registered bidders tuning in on average and 3.7 actively participating. The first Saturday of August is also shaping up well with a mixture of on-site and online auctions going ahead depending on the city.In Brisbane, the snap three day lockdown was extended on Monday for another week so all auctions will be taking place online this Saturday including for 97 Lillian Ave, Salisbury.Ray White Annerley agent Bevin Powell said prior to the lockdown he had already had close to 100 groups through the property, many of whom were upsizers looking for a character property in the area.Meanwhile, Ray White Bulimba principal Brandon Wortley will be taking two homes to a back-to-back online auction session on Saturday. Mr Wortley said 11 David St, Morningside has had one of the best renovations he’s ever seen and is not only a great entertainer but has plenty of living space.“We’ve had almost 80 inspections prior to lockdown and we haven’t seen that interest wane over the past week,” Mr Wortley said.“There are bedrooms and living areas on both levels which really suits a lot of the young families we’ve received interest from. We’ve also been speaking to a few empty nesters who want to move a bit closer to the city.”No. 36 Harris St, Hawthorne (pictured above) will also join David Street in the online auction session. Not only are locals eager to snap up the six bedroom home that once belonged to former AFL star Jonathan Brown but several expats are also ready to throw their hat in the ring come Saturday.Mr Wortley said the house is one of the best in the area and was beautifully renovated in 2009 by Mr Brown who then sold it to the current vendors.“The high quality renovation, great location and block size have been huge drawcards for buyers and we had more than 70 groups inspect the home,” he said.“We deliberately ran a short auction campaign on both because the market is so buoyant at the moment and we’ve had enquiries coming in on the first day of campaigns.”
In Melbourne, auctions can take place on-site but with restrictions. Many auction campaigns ending this weekend went through the July lockdown but that hasn’t worried buyers who have been eager to inspect what’s on the market including 6 Alvie Court, Westmeadows, 4 Hamilton St, Seddon and 36 Renaissance Blvd, Mernda (pictured above).Ray White Gladstone Park director Phillip Mercieca said his Westmeadows listing, which he sold to the current vendor several years ago, has been popular among first home buyers and investors.“We’ve been inundated with enquiries and outside of the lockdown period we took 65 groups through the home,” Mr Mercieca said.“It just shows that there are still good quality buyers and high demand out there.”Meanwhile, Ray White Seddon agent Patrick Jamroz was only able to complete two Saturdays of opens on Hamilton Street but there’s been no shortage of interested buyers. He has received interest from locals looking to upsize but stay in the area.And in Mernda, Renaissance Boulevard attracted almost 40 groups outside of the lockdown period in Melbourne. Ray White Mernda director John Metaxas said inspections have come from first home buyers and downsizers who have already sold.“As soon as we opened back up, the buyers just came straight back. We are almost completely back to normal since the lockdown and buyer demand has continued to be high,” Mr Metaxas said.
The Sydney lockdown continues again this week but real estate agents across the city are still fortunate enough to be able to conduct private inspections and online auctions.The north-facing views and art deco style of ‘Murraya' (pictured above) have been a hit with buyers and will go to auction this weekend. Ray White Drummoyne selling agent Chris Wilkins said the character features and great location have made it particularly popular with young families.“I’ve received a lot of interest from young families who want something a bit different and to get their foot in the door of the tightly held Abbotsford area,” Mr Wilkins said.In Brighton-Le-Sands, developers and builders are eager to get their hands on9 Cashman Road this Saturday through Ray White Brighton-Le-Sands | Ramsgate Beach principal Peter Tsekenis, who said he’s been inundated with enquiries for the almost 700sqm block.“It’s been mind boggling that even with the Sydney lockdown happening, it hasn’t phased buyers,” Mr Tsekenis said.“There is so much momentum still in the market. Demand continues to be very strong for freestanding, owner occupier homes and duplex development sites."
Like in Melbourne, those in Adelaide can also conduct auctions on-site but with similar restrictions.Over the past year, many Sydney and Melbourne buyers have been looking at making the move to Adelaide which was ranked the third most liveable city in the world in the 2021 Global Liveability Index. Interstate interest is something Ray White Norwood agent Ryan Stapleton has seen first hand through the auction campaign of 12 Kerrison Avenue, Ridgehaven (pictured above).“Not only are locals looking at this property but Melbourne and Sydney buyers as well. There’s been interest from first home buyers, families and even investors so it’s been very mixed,” Mr Stapleton said.Later in the day, Ray White Tea Tree Gully agent Mohit Gupta is also expecting a good auction at 3 Aldrin Crescent, Modbury North which has been well received by buyers.
