While there are few signs to celebrate when it comes to the Australian real estate market right now, all hope is not lost. Homeowners might be giving up luxuries, but they will always need to buy and sell homes.
And good news just in; it looks like the downturn has bottomed out for now.
As always, excellent customer service and the visibility of your agency and brand will help you stay in the running.
Take heart. There are any number of reasons homeowners and property investors need to sell. We’ve listed 21 of them below, and there must be many more.
The cycle of life will keep the real estate market ticking over.
1. Downsizing the family home
Many sellers are waiting for the market to improve before selling their family home. However, many homeowners will make their move regardless. For agents, this is a great opportunity to help them get the best possible sale price for their current home.
Conversely, some sellers might have had a run of good fortune and are now ready to upsize. While they might not achieve the sale price they anticipated for their current home, they will no doubt win with a lower price for their new home, so the changeover cost is less.
The current economic climate means that some homeowners need to sell, especially as fixed rate mortgage deals expire. Homeowners under financial stress will be looking for a more manageable mortgage or to return to renting until their position improves.
4. Upsizing for space
There are always buyers with growing families in search of a larger property, close to good schools and public transport.
5. Moving overseas
Many homeowners moving overseas prefer to sell up during a slow market and bank the money rather than risk further falls and a depreciating asset.
6. Job transfer interstate
Those moving interstate for work might seek to buy in their new location. In some cases we’ve heard of recently, homeowners are selling in Sydney and buying in Brisbane or Hobart so they are debt free with spare cash in the bank.
7. Loss of employment
Many homeowners find that when they lose their job they are unable to meet their mortgage commitments. This might result in a forced sale, often of a much-loved home.
8. Sea change or tree change
We see sellers (such as those who work from home and can reduce their living costs without losing clients) who are leaving the city for a country town.
Homeowners who are retiring think about downsizing once they’re no longer tied to a particular area through work, or so they can draw on their equity.
10. Overseas arrivals
Those arriving from overseas might have sold their property in their home country and looking for a ‘forever home’ in Australia. The subdued local housing market and weak Australian dollar make this market attractive to many overseas buyers.
Deceased estates are always a factor in the property market.
12. Ill health
Whether for easier access in and out of the house, closer proximity to health services, or reduced income, homeowners with health issues might move now to make their lives easier in the long run.
13. Retirement living
Many homeowners of retiring age choose to move into a retirement home or over-55s accommodation. They’re ready to trade their current home for one with a built-in community and low-maintenance living.
Sadly, a divorce often means selling the family home.
15. Investment opportunity
Many investors view the current market as a great opportunity to buy; e.g., in newly built apartments where original buyers pulled out due to tightened lending by banks.
16. Parental investment
Parents shop around for entry-level homes as an investment for their children’s future. This is a smart move right now, with prices low and stock high.
17. Superannuation acquisition
People receiving their super payout might choose to invest in an investment property as an alternative to shares or managed funds.
18. Renovation alternative
People who might have chosen to renovate in the past might instead opt to take advantage of the current market. This is a savvy move and can mean they get a great new home without the hassle of renovations.
19. Accommodation business
As Airbnb continues to compete with the hotel market, people might consider buying a property to rent out for a short-stay accommodation income stream.
20. Land banking
Land banking now means that when demand for housing inevitably picks up, the land is ready to build on.
21. Investing in convenience
Some buyers will choose to buy a new home closer to new transport facilities or their place of work. Those who work in the CBD, for example, might view the current market as a great opportunity to buy an inner-city studio or a property close to public transport to cut down on travel time.
So there you have it – people will always have solid reasons to buy and sell. As an agent, it’s worth being aware of these reasons when meeting potential clients, and to find the opportunities in the current market.