The COVID-19 pandemic has seen a sharp reduction in listings as buyers return to the market, meaning now could be a good time to sell your home, highlights an industry expert.
RE/MAX Australia director Joel Davoren explained it usually takes 90 days for a home to be sold, with sellers who wait two weeks until 3 June likely to have their place sold during the peak real estate months.
“In a normally functioning real estate market, the average time for a listing tends to be 90 days,” Mr Davoren said.
“Ninety days – that’s a standard time in real estate terms.
“So, as of Wednesday, 3 June, we are a natural property transaction cycle away from spring, when it’s often said that people traditionally sell their homes.”
However, Mr Davoren cautioned sellers on waiting until 90 days out to start conversations with agents and take their property to the market.
“Don’t wait until your property is competing with all the other listings,” he says, making the point that the real estate market continues to move forward as it has always done, albeit the natural transaction cycle may prove slightly different to the one we are used to,” Mr Davoren said.
“Consumer sentiment is driving any downturn we are seeing in the real estate market rather than economic sentiment; and it is the ‘little things’ like being able to go for a 50-kilometre drive than a 150-kilometre drive, and like easing up on or removing restrictions around open homes, that will lift consumer sentiment.
“I won’t be surprised to see an increase in new listings over the coming weeks.”
Mr Davoren said given most of the downturn is consumer sentiment, if sellers are proactive with their properties, buyers will follow.
While clearly recognising the trying times that many in our communities are facing, pent-up buyer appetite does exist out there in the market as demonstrated by record numbers on the property portals, he said.
“Hearing that real estate restrictions have been peeled back, that they, for instance, may attend open homes and auctions – abiding [by] distancing rules and safe hygiene practices – will boost consumer sentiment,” he said.
He suggests that sellers and buyers, along with agents, should not fall back into old habits because the real estate landscape has shifted through COVID-19.
When choosing an agent, sellers need to look at that agent’s performance through the worst of the restrictions – through those first six to eight weeks.
Mr Davoren said a new benchmark now existed for the way agents should be connecting with buyers and sellers, and there was an observable shift in how agents were working with buyers.
“Before this crisis, we had already seen a shift towards this new trend, but agents were still predominantly relying on the property to draw the buyer,” Mr Davoren concluded.
“The pandemic has proved to be the catalyst for an increasing focus on the buyer and driving momentum for working harder and smarter and better matching buyers with property.”