More property owners think now is a good time to sell-up than a year ago, as strong price-growth buoys confidence, a recent survey has revealed.
The latest Residential Audience Pulse survey by realestate.com.au in July found 44% of potential sellers surveyed believed now was an opportune time to sell, compared with 37% at the same time last year.
This improved sentiment was primarily driven by respondents in Western Australia, South Australia, and Queensland, where home price growth has been substantial over the past few years.
In WA, over two-thirds of potential sellers thought now was an ideal time, marking the highest confidence among all states and an 8% increase from last year.
Nearly two-thirds (63%) of South Australian respondents also felt confident about selling now, with more than half of Queenslanders sharing the same sentiment.
In New South Wales, 45% of sellers were confident about selling right now, a 13% increase from last year.
However, Victoria showed less confidence among sellers, with only 29% believing it was the right time to sell. This was still a significant improvement from July 2023, when only 19% felt positive about selling, representing a 55% increase over the past year.
Nationally, the primary reason sellers thought now was a good time to sell was due to personal circumstances – including down-sizing, up-sizing, retirement and relationship status changes.
However, the main motivators varied from state to state.
In WA, 39% cited higher buyer demand as the perfect reason to sell, closely followed by the belief that home prices were elevated. Perth's home prices were up by 13% year-on-year, and regional WA prices nearly 15%.
Additionally, demand is high, with enquiries per listing in Perth up by 30% year-on-year and 24% in regional WA.
In South Australia, 42% of respondents believed high prices were a good reason to sell. Adelaide's home values were up by 15% in August, with regional SA prices increasing by 9% year-on-year.
In most states, the majority of respondents indicated they were selling due to personal circumstances, with Victoria at 58% and NSW at 45%.
Surprisingly, despite Queensland's strong market, a third of sellers were motivated by personal circumstances, though high prices and demand were also significant factors.
One revealing insight from the survey was the main reason respondents cited for selling their property.
Nearly a quarter said they were downsizing, which could be attributed to various factors.
Australia's ageing population means more retirees are sitting on substantial equity in their family homes and are moving to more suitable accommodations.
A similar number of respondents said they were upsizing, seeking financial gains, or avoiding the upkeep and maintenance of their current property.
For the first time, respondents were given the option to say they were selling their homes to move away from or closer to the city, revealing interesting results.
Nineteen percent of sellers wanted to move away from the city to be closer to the beach or mountains.
Post-pandemic hybrid working arrangements enable more homeowners to live further from their place of employment, continuing the migration from cities to outer suburbs or regional areas.
Notably, fewer property owners were selling to move closer to the city, with only 5% citing this reason.
Another notable response was the need to sell to reduce spending, debt, or release capital, with 19% of respondents indicating this.
Increased mortgage payments due to higher interest rates and the rising cost of living have forced many homeowners to consider selling to make ends meet.
While many potential sellers felt now was a good time to sell due to high prices and demand, fewer maintained this outlook for the future.
More sellers expected prices to remain stable rather than rise in the next six months, with 38% predicting stability compared to 33% expecting a rise.
Additionally, the number of sellers expecting price increases dropped by 27% over the quarter.
Sellers had similar sentiments regarding demand, with 39% believing it will remain stable compared to 31% expecting it to rise.
There's also been a sharp increase in the number of sellers anticipating further interest rate hikes, up by 65% since the last survey in April.
These insights show that while more sellers believe now is a good time to sell due to high prices and strong demand, there is less confidence that these conditions will continue over the next six months.
Listings have been strong over the winter and show significant year-on-year growth moving into spring. These trends suggest sellers may be trying to capitalise on what they perceive to be the best time to sell.
