Autumn season strong as market pause approaches - John McGrath

We are seeing good competition at auctions this Autumn, with the national combined capital city clearance rate holding above 60%, which is considered the benchmark for a balanced market.

Looking ahead, we’ll see a pause in market activity over the Easter school holidays in mid-April. In addition, with the Federal Election to be held in May, we’ll see fewer auctions scheduled for Election day (even though there is no reason to avoid election day!).

While the market is currently cooling across the board, it was interesting to see Sydney reverse the trend with an 0.3% median price rise in February after three consecutive months of falls.

The combined capital cities median price also went up by 0.3% after two consecutive months of declines, while the regional median continued its gradual but consistent upward trajectory.

The data tells us that prices are holding up pretty well even though market conditions have changed.

There is greater evidence of the market slowing down in the days-on-market (DOM) statistics.

Nationwide, it now takes a median 42 days to sell, which is up from 33 days a year ago, according to CoreLogic figures.

Along the East Coast, the time it takes to sell has lengthened in every capital city bar Canberra and every regional area bar regional South Australia over the past 12 months.

The current median DOM by city are: Sydney 48 days, Melbourne 51, Brisbane 27, Adelaide 36, Perth 19, Canberra 55, Hobart 56, Darwin 66. The median DOM by region are: NSW 62 days, Victoria 63, Queensland 35, South Australia 46, Western Australia 29, Tasmania 59, Northern Territory 98.

Several factors contribute to the length of time it takes to sell your home. Market conditions are one of them, and of course this is out of your control. But many factors are within your control. They include taking the time to choose your agent carefully and investing in high quality marketing.

So, don’t worry if your local market is weakening. There is plenty you can do to help your home sell within a satisfactory timeframe. Here are my three best tips.

1.Meet the market on price

Nothing will be more attractive to a buyer than an attractive price. Your agent will show you some comparable sales to help you understand local market values today. This will help you set an appealing asking price for private treaty, or a realistic price guide for auction (if allowed in your state or territory).

Setting the price is more of an art than a science. No two homes are identical, so you and your agent must compare your home to recent sales and adjust for any differences.

2.Quality marketing

Your marketing campaign must have broad reach to potential buyers, and must also inspire them to act and attend an open. Call in the professionals for great photography and persuasive copywriting.

3.Excellent presentation

The key to extracting a premium price for a property – in any location, at any time, in any market – is emotionally connecting a number of buyers to your home and creating competition between them.

The way to improve your chances of buyers falling in love with your home is superior presentation.

Don’t be offended if your agent suggests professional styling! The purpose is to present your home in its most marketable form to buyers. Universally appealing styling that helps buyers imagine themselves living there will enable more people to emotionally connect with your property.

Your home will receive the highest attention from buyers within the first 14 to 21 days of your campaign, so it’s crucial to get these three things right from the very start.

One of the great mistakes sellers make is setting the price too high, thinking they can simply lower it later if they need to. This damages campaigns from the start. You’ll never get those first 14 to 21 days back.

So, listen to your agent, look at the comparable sales, and meet the market on price to generate as much competition as possible. It’s competition that provides your best chance of a premium result.