Is now an opportune time to downsize your family home?
Perth’s limited housing stocks and ultra-competitive market could be a boon for downsizers debating if now is a favourable time to trade their big family homes for financial freedom.
Local homeowners are keenly eyeing market movements, with hopes to capitalise on strong buyer rivalry for the limited number of properties for sale – and ultimately net a higher price.
Mont Property Managing Director Matthew Podesta said the buyer cohort was actively searching for established family homes rather than embarking on new builds and large scale renovations.
“Considering the current challenges of building, particularly the delays and cost blowouts, astute buyers are looking to buy homes in prime locations,” Mr Podesta said.
“We have a dire shortage of family homes coming to market, yet high demand for these types of properties so there is an opportunity for people to list sizeable family homes for sale and perhaps reap the additional financial benefit of having a number of interested buyers.
“Our database is full of buyers who are keen to get the jump on upcoming listings and properties that might soon be coming to market.”
Mr Podesta said despite 12 interest rate rises since May 2022 and cost-of-living pressures, sellers were finding buyers quickly, and some properties were attracting multiple offers and sale prices often in excess of expectations.
“Selling your family home while demand is high and prices are exceeding expectations may be an opportunity for downsizers,” he said. “Acting now may enable the purchase of a smaller, lower-cost property before further price rises.
“In some cases, tenants are looking to buy their way out of the current rental crisis and purchase their own properties, which may mean greater stability and a more affordable option.”
Mr Podesta said there was a growing number of people keen to ditch the responsibility of home maintenance and big gardens to buy a ‘lock-and-leave’ and travel more.
“Winter has reinforced to some that they are no longer interested in the effort of home maintenance,” he said.
“Many are also feeling the pinch of cost-of-living price rises and want to trade their family home for a smaller property that might afford them a simpler life and the ability to travel unencumbered.
“The post-COVID wash-up means lots of people are travelling overseas now and that pull of a European holiday, a ski trip to Japan or enjoying some warmer weather in Fiji is now stronger than ever.”
Real Estate Institute of WA data shows properties across Perth are continuing to sell quickly, with June setting a new record median of 10 days on market. The number of properties for sale on www.reiwa.com hit a 13-year low of 5384 at the end of June.
“Resilience has been the theme for 2023 so far, with house prices continuing to grow in the face of 12 interest rate rises,” REIWA Chief Executive Officer Cath Hart said.
“Demand for homes is strong and is supported by population growth. This is expected to continue, with WA recording a 2.3% increase in its population over the year to December 2022 and forecast to grow another 1.8% in 2023-24.”
If the prospect of downsizing your home is on your agenda, please contact our team.