Spring market house tips: Experts explain if you should buy or sell your house first

Australians planning a home move are facing one of the toughest spring markets to decide whether to buy or sell first in years. Here’s what the experts reveal.

Nathan Mawby

@mrmawby

3 min read

August 21, 2023 - 5:00AM

News Corp Australia Network

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Australians planning a home move are facing one of the toughest spring markets to decide whether to buy or sell first in years.

Last year’s rising rates were a signal to sell first, 2021’s booming market was the time to make buying a priority.

This year owners have to weigh up whether they think there will be more rate hikes or even a cut by the end of the year, whether building industry woes will resolve, and how they will find their next home amid limited listings.

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But National Property Buyers director Antony Bucello says there are ways to pinpoint whether to buy or sell first, provided you get started now.

Among his tips are to track auction clearance rates and the general time on market.

One of the first things to look at is if prices are falling in your neighbourhood, if so Bucello advises “selling first to maximise the money you have got to buy with”.

Antony Bucello is the Victorian state manager of the National Property Buyers, photographed at their offices in Balwyn in Melbourne's eastern suburbs.

“And then hopefully it keeps declining and that puts you in a better position to buy,” he says.

If prices are rising sharply he recommends selling and buying as close together as possible.

Any significant change, up or down, in how long it takes to sell homes in your area could both point to buying first as the better option, as a decrease usually indicates high buyer demand while an increase might indicate a poor selection of homes for sale.

Similarly, a rising clearance rate is another indication you should buy first.

“But if it’s declining, you would then have a good think about selling first,” Bucello says.

Real Estate Institute of Australia president Hayden Groves says one of the biggest factors in deciding to buy or sell first at the moment would be your type of home.

REIA president Hayden Groves.

Groves says families upsizing from a house of reasonably good quality in a desirable area could “quite comfortably” sell first, as higher interest rates have knocked a number of buyers out of top price brackets, meaning less competition for more aspirational homes.

Affordable houses might have higher competition as a result of more buyers having their finances squeezed, but also from renters seeking to become first-home buyers – and owners could just about choose their preference.

“But if you are a downsizer, I’d be selling then buying,” Groves says.

Apartment sellers should be aware PropTrack data has shown upwards of 30 per cent of homes on the market today are former investments, and there could be quite a number of similar homes for sale with limited numbers of investors looking to buy them.

Rising cost of living has also lowered demand for homes that do not have the scope to bring in a flatmate.

“So demand for smaller and particularly one bedroom apartments is probably coming off,” Groves says.

“It’s also coming off for stock where insurance costs are rising.”

His final advice is for anyone with a home in need of a renovation to make selling a priority, because the current lack of supply in the trades has made projects less appealing for buyers.