One of the greatest challenges in property sales is timing the market to sell at the top.
This information is important if you plan to exit the market, or move interstate or overseas.
If you plan to buy another property after you sell and think the market is close to the top, you might be better off selling your property, renting for a while and buying again later.
The above graph shows the predictable cycle of real estate. It can give you a sense of the events that precede the market reaching the top.
Interest rate rises are always a major indicator. When you see this happening, as well as full employment and tightened bank lending, it’s time to sell!
Sometimes you’re better off selling just before the banks tighten their lending or your buyer might not be able to finance their purchase.
After the market reaches the top, it then ‘comes off’. Sometimes this can happen in only a few months. When the market stalled in 2008, it collapsed in only three months and dropped by a whopping 20%.
So the tip here is to go early. Don’t wait until the last moment, as you might have to wait years for the market to return to these levels.
If you have any other queries about selling your property, contact Alan Bourke or anyone from Bourkes on (08) 9474 2000.