Should I sell now or wait until next year?
It’s that time of year! After the clocks go back and the countdown to Christmas begins, property sellers often consider putting their plans on hold and waiting for the busy “spring bounce” as a better time to sell their home.
Should I sell my home now? Or wait until next year?
Updated by: Mark Grantham on 1st November 2022
In the run up to Christmas, we’re often asked by property sellers whether it’s better to wait until spring next year, before they list their property for sale. The springtime is usually the busiest time in the property market, so there is some sense in waiting until after Christmas.
However, market conditions are changing. So the decision to wait for the “spring bounce” isn’t as straightforward as it might usually be.
Here are some considerations to bear in mind:
1. Interest rates – Interest rates are expected to increase over the coming months. Inflation is still very high at 10%. And for the Bank of England to meet the 2% inflation target, interest rates are likely to continue to increase.
2. Stock levels – There’s likely to be more stock on the market next year, which might contribute to a fall in house prices. Waiting to sell next year could potentially mean you are competing with more stock.
3. Price adjustment – In a falling market, prices generally fall over a long period of time (months or years, rather than days or weeks). Selling by auction means your locking in today’s price, rather than being “under offer” and waiting 5 months for the buyer to re-negotiate the price based on market conditions at the time.
4. Test the market? – If you are in a position to sell now, why not test the market? Some property sellers can’t sell straight away because they might be in a chain, or not have the legal authority to sell. But if you can sell now, why limit your options by waiting until next year.
In times of economic uncertainty, we’re asked why anyone would consider buying a property now, when they can potentially wait a few months for house prices to fall.
So why bother to list a property for sale, if no one’s going to buy it?
There is a misconception in this belief. There are always buyers in the market.
Who will buy my home in this market?
There are always property buyers in the market. Here are some considerations to bear in mind:
1. People need homes – There is a national housing crisis, with a severe shortage of housing in the UK. Of course someone will buy your home, but it just comes down to the price they are prepared to pay.
2. Renting is expensive too! – It’s not just mortgage rates that are going up. Rental prices are increasing too. When looking to move home, a prospective buyer will weigh up the option of buying versus renting. And if the monthly mortgage repayment isn’t considerably more than a monthly rental payment, the option to buy won’t be ruled out.
3. Inflation – Some buyers look to buy property to hedge against inflation. Both gold and property are considered a good hedge against inflation.
4. Cash buyers – Not all property buyers rely on a big mortgage. Some buyers might have a considerable deposit, which lessens their mortgage repayments. And don’t underestimate the number of cash buyer in the market too.
5. Auction is quick – Buyers like buying through auction, for the same reason sellers like selling by auction. It’s quick! And cuts through all the delays and protracted conveyancing, which is currently taking an average of 5 months with an estate agency sale.
Thinking of selling your house at auction? Any type of property can be sold at auction, whether in good or poor condition. Call 0800 862 0206 for your free auction sale price estimate, or request a quick quote online.
Contact us to find out if your property is suitable for auction Request a free pre-auction appraisal or feel free to call us on 0800 862 0206 – we’ll be happy to help.