Homeowners wishing to sell may not always have the luxury of time, but for those with less pressure, properly timing the sale of their house can have a big impact on the final sale price and entire experience.
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According to Cobus Odendaal, CEO of Lew Geffen Sotheby’s International Realty in Johannesburg and Randburg, buyers who are willing to be flexible with their buying timetable may be able to achieve better offers.
Odendaal lists five key factors that influence the best times to buy or sell a home:
Seasonal trends
Real estate markets frequently follow predictable seasonal trends, and spring is usually the busiest season for home sales. Blooming gardens typically enhance the appearance of homes, and families prefer to relocate when their children begin new schools.
The market remains active during the summer, although it may slow down for a period of time as individuals focus on their vacations before returning to school or work following the holiday season. Autumn is a little calmer, but we still see consistent activity as people settle into the new year and start making preparations.
Winter is often the slowest season; nonetheless, serious buyers remain active, and less competition can benefit both buyers and sellers.
Sellers could try listing in the spring or late summer/early fall to capitalise on increased demand, while buyers may discover better prices in the winter when there is less competition.
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Economic indicators
National and local economic factors have a significant impact on real estate markets.
Interest rates: Lower rates often drive buying activity by making mortgages more affordable, while rising rates may encourage purchasers to act swiftly before additional increases.
Employment rates: Strong employment markets are frequently associated with higher house buying activity.
GDP growth: A growing economy typically supports a strong housing market.
Monitor economic forecasts and consider selling when indicators point to robust economic growth. Buyers may find opportunities when economic uncertainty drives some sellers to reduce prices.
Local market conditions
Real estate is intrinsically local, and conditions can differ greatly between places.
Supply and demand: A low inventory of properties for sale usually benefits sellers, whereas a surplus of listings can help buyers.
Days on market: If properties in your neighbourhood are selling quickly, it’s probably a seller’s market.
Price trends: Consistently rising property prices indicate a strong seller’s market, whilst static or dropping prices may offer chances for buyers.
To assess local market circumstances, talk with local real estate agents, watch web listings, and review local market reports for the last five years. Sell when inventory is low and demand is high; purchase when the reverse is true.
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Development and infrastructure projects
Upcoming changes in your region can have a big impact on property values. For example, better accessibility afforded by new transportation links frequently increases property values, and commercial development such as retail malls or business parks can enhance an area’s desirability.
Stay updated about local development plans in the regions of interest to you, and consider selling after favourable improvements are announced but before they are implemented to capitalise on anticipation. Buyers may be able to locate attractive offers in regions where anticipated upgrades have yet to effect prices.
Political and legislative changes
Government policies can have a significant impact on real estate prices. Changes in property taxes or mortgage interest deductions can have an impact on purchasing and selling decisions, and government measures targeted at boosting homeownership or controlling the rental sector can alter market dynamics.
New zoning regulations can have an impact on property values and development possibilities, particularly in locations with developing commercial hubs.
Keep track of prospective legislative changes at the local and national levels, assess how they may affect your property value or purchasing power, and plan your transactions accordingly.
Odendaal believes that knowing which elements influence the market is insufficient; it is necessary to adequately study them in order to make strategic decisions, and he recommends the following measures to make more informed choices:
Conduct regular and thorough research: Regularly read real estate market reports, economic projections, and local news. Websites of respectable real estate companies, government economic data, and local news sites and periodicals are all useful resources.
Consult with professionals: To gain expert insight into market patterns and predictions, speak with experienced local real estate agents, financial consultants, and possibly an economist.
Closely monitor your local market: Keep track of listing pricing, time on the market, and sale prices in your neighbourhood or places where you want to buy. Several property websites provide tools to help with this.
Consider your personal circumstances: While market timing is crucial, it should not come at the expense of your personal needs or financial circumstances. Make sure that every decision you make is in line with your overall life plans and financial goals.
Be prepared to act: Once you’ve recognised a beneficial market scenario, be prepared to act rapidly. Have your money and paperwork in order, your home ready for sale, and your purchasing criteria specified.
Don’t try to time the market perfectly: Predicting a market’s absolute peak or trough is practically impossible. Instead than focusing on the ideal time, aim for generally beneficial conditions.
Consider the long-term outlook: Real estate is usually a long-term investment. While short-term benefits may be appealing, examine how your selection fits into your long-term financial and lifestyle objectives.
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