Whether you are selling your home because you are relocating, downsizing or investing the profit elsewhere, the time you decide to sell your home is of vital importance and can affect your chances of success.
Here are the top 2 periods in which to sell your home.
1. During the sellers’ market
The property market is determined by the supply and demand of real estate, which determines whether it is a sellers’ or buyers’ market.
In a sellers’ market, there are more buyers than there are houses for sale. Homes placed on the sellers’ market generally sell much faster, and at a higher price.
In a buyers’ market, there is more supply than demand, which means that there are more homes than actual buyers. Homes placed during this time generally stay on the market much longer, and the price either stays the same or decreases.
Unfortunately for sellers, South Africa is entering into a buyers’ market after the fall-out from our weak economic climate. According to this expert, “We saw a progressive shift in 2017 which has manifested in lower demand, rising stock levels combined with a decline in buyer confidence, flat price growth and deals taking longer to conclude.”
While this isn’t the news that sellers were waiting to hear, it is certainly not impossible to sell your home in a buyers’ market.
How to sell off the market:
- While you shouldn’t sell below your property’s worth, there is concern that there is a lag on the sellers’ side of the property equation in that their price expectations are out of step with the market. Ensure that you are not setting your price too high!
- A seller will also be more likely to sell a home with greater ease when the property is in a sought-after location, which is where Capetonians have an advantage.
2. Sun’s out, cheques out
If the current property market does not suit your needs, then the next best time to look at selling is during the sunnier seasons such as summer and spring. Spring is the season of new beginnings and fresh starts, and people are known to relocate more frequently during this period.
The number of buyers at your show house will tend to dwindle during the colder seasons as the thought of getting out in the cold to view a house may seem less than appealing to most. According to experts, “It is just more fun going house-hunting in the sun. Homes are brighter, gardens are more colourful, and everything is more green.”
While our gardens aren’t looking so green thanks to the water crisis, summer and spring do have other merits: they bring tourists looking for holiday homes. Cape Town becomes a huge tourist attraction and sees more interest in properties as people start looking at investing in a holiday house, or even relocating.
School and public holidays periods also affect show house attendance. Over the December holidays, for example, Pretoria empties out as everyone ‘hoofs it’ to the coast for their summer holidays, where they might be tempted to invest in a summer house.
While South Africa is currently experiencing a buyers’ market, it is clear to see that sellers in Cape Town have the advantage with coastal homes being exceptionally popular.
Remember, the market you sell in is also the market you buy in. Once your house is sold, you will be looking (or have looked) for a house to move in to quickly. This means that although one side of the market may not be in your favour, the other may respond well to your real estate needs.
If your property is currently set in an unfavourable market, consider renting it out instead of selling. This ensures a steady stream of income which can go into the bond repayments of your new house.