Homeowners who list earlier in the year will be in the best position to cash in on the current boom market, housing experts claim.

It comes as property group CoreLogic reported much of the country has become a “seller’s market” where buyer demand has surged and listing levels remain at close to record lows. But the researcher also cautioned these conditions may not last as an increase in listings, which could occur in the second half of the year, would help to ease pressure on buyers to pay higher prices.

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My Housing Market economist Andrew Wilson said it was common in strong housing markets for there to be a lag in listings due to homeowners responding late to prime selling conditions.

This often resulted in a sudden glut of sales when opportunistic sellers finally listed and the increase moderated prices, he said.

Early sellers, especially those with freestanding houses, would have the market to themselves, Mr Wilson said.

Auctioneer Alex Pattaro said homeowners should sell first and buy second. Picture: Adam Yip

Auctioneer Alex Pattaro said homeowners should sell first and buy second. Picture: Adam Yip

Ray White chief auctioneer Alex Pattaro said some homeowners were shooting themselves in the foot by trying to buy first and sell after. “In this market you sell first and buy second,” he said, adding that the mistake in buying first was that it could “trap” homeowners.

“The problem is most homeowners are looking to buy first so there are few sales and more buyers competing for that stock,” Mr Pattaro said.

Home sellers could mitigate some of the challenges of the competitive buying market by negotiating a six-month settlement rather than the standard three month period, he added.

“We don’t know what is going to happen later in the year so you’re better off selling while there’s certainty,” Mr Pattaro said.

The market is very strong at the moment. Source: iStock

The market is very strong at the moment. Source: iStock

SQM Research director Louis Christopher said one of the big question marks for the sales market was the potential impact of the government ending JobKeeper. The support payments helped prop up much of the market during the worst of the COVID crisis last year and if the government decided in March to end the payments as planned it could slow down the market, he said.

“For now the market is very strong,” Mr Christopher said.

Upside Realty director James Kirkland said a “tsunami of listings” after JobKeeper ended was becoming a real possibility.

“If you’re thinking of selling, now is a good time to do it,” Mr Kirkland said.

Glebe homeowners Mike Hercock and Jo Hardy (pictured above with their kids) said they decided to list their Burton St home before upsizing after realising it would be easier. “We thought it better to get in early,” Mr Hercock said. “It would give us a sense of how much we could spend and we saw it as a good opportunity because a lot of people are looking but not much is available.”


This article appears in the Saturday Telegraph’s new look real estate section available in stores tomorrow

Originally published as Why now is the best time to sell your home

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