Timing matters when it comes to selling a home, and that time might be now.
Here in the Sutherland Shire, we’re going through what’s called a low stock property market. With disruption and uncertainty ongoing in real estate at the moment, supply has shrunk despite demand remaining strong. In fact, we’ve seen stock levels across the Shire dip below 650 advertised properties, which is quite low for the region. This means savvy home sellers are getting in now to try to access faster, stronger sales.
Here’s what you need to know.
What is a low stock property market?
A low stock property market is what happens when there are significantly more buyers than properties available in a given region. Put more simply, properties are literally ‘low in stock’.
This lack of supply can have a huge potential impact on your house sale (in a good way).
Why does low property supply matter?
You see, everything in the Australian economy is defined by supply and demand – from houses to retail properties to people’s wages to gumboots … everything!
High demand usually drives prices up as sellers take advantage of buyers battling for limited goods. Alternatively, high supply can often tank prices as sellers are forced to compete with one another for limited customers.
Real estate is no different.
Your property is a product, and that product has value. When there’s strong demand for that product, but not much competition, it may allow you to access much stronger market conditions, resulting in a better, faster sale, at a higher price.
Learn more: What are the steps in selling a home? The timeline simplified
Benefits of selling in a low stock market
Let’s take a look at some of the common benefits we see here in the Sutherland Shire of selling when there’s low supply.
1. Less competition
With fewer properties up for sale, yours is more likely to stand out. After all, your listing isn’t competing for attention with numerous similar properties. Plus, if your property features something different or desirable – perhaps a very large footprint, solar panels on the roof, extra rooms – then it might even be genuinely unique on the market. That’s good news for your price.
2. Stronger prices
The Sutherland Shire is a very desirable property market, and we typically see demand remain fairly strong even when supply drops (as is the case at time of writing). This usually helps to push prices up because buyers are competing with one another for the best properties.
It’s also worth remembering that we’re seeing more buyers coming back onto the market after February’s rate cut, adding more energy to the market – making this a double win for sellers.
3. More serious buyers
When property stock runs low, buyers are usually less likely to browse passively – they just don’t have the multitude of options to scroll on their phone, and there aren’t as many open homes to pop into casually.
So, the buyers you’ll usually see in a low stock market are often more qualified, prepared and serious about making offers. They have competition, so they need to move quickly. This can reduce time wasters and streamline the sales process.
4. Faster sales
With great energy from buyers, not many properties to choose from and that feeling of needing to act now to secure a deal, a low stock market often leads to faster house sales.
The average time to sell a home in the Sutherland Shire fluctuates depending on the time of year or where you’re located, but usually sits at around one to two months. When supply is low, it’s common to see great homes sell at the lower end of that timeline, rather than the upper.
Hoping to improve both your time to sell and overall price? Read more about the 10 most common home selling mistakes.
5. Opportunity for off-market sales
An off-market sale is where you sell to a private buyer without listing your property at all. This can reduce a lot of hassle and result in a very efficient sales process – there are no multiple open homes to juggle, no demands from different parties, just one buyer, one seller, negotiating a great deal.
Of course, it’s not easy to secure an off-market sale even in a low stock market. Usually, you’ll need the help of a local real estate agent – someone with an expansive network of buyers to choose from, and a lot of experience negotiating.
Ready to sell? Take the next step today
First, there are a couple more articles you can read to get your home ready to sell and build your confidence. Learn more about how to prepare a home for sale here, and find tips about staging a property here.
Then you’ll need a qualified, experienced local real estate agent – someone who knows the Sutherland Shire inside and out, and who can guide you on maximising your market attention, negotiating with buyers and finding additional opportunities (such as off-market sales).
That’s where MattBlak comes in.
We’re the Shire’s experts when it comes to property because we’re locals too. We’re here to help you get the best price possible for your home, so when you’re ready to sell get in touch and let’s start the conversation.