Navigating the WA Real Estate Market: Current Trends and Insights
The WA real estate market is bucking all the national trends and with fewer houses on the market selling for more than ever before, making the decision on whether to buy or sell your home first is at the forefront of a lot of people’s minds.
Our recent research study revealed that in 2023 around 15% of people delayed buying or selling due to the lack of listings on the market and rising house prices.
A significant portion that showed that more properties are being held off coming on the market.
When we asked why, most people said they were afraid they wouldn’t be able to find a new home, or would be priced out of the market. Which brings us back to;
Is it better to buy a home or sell a house first?
Whilst there is no right order in which to buy or sell your house, there are definitely pros and cons of both options in today’s market.
Buying a property first
Advantages of buying a property first
Buying a property first may seem like its taking the stress out of the process.
You can take your time to find the right property and avoid paying double removalist costs by moving in immediately.
Disadvantages of buying a property first
Today we are in what is called a ‘sellers’ market’. With few homes for sale, but lots of buyers looking to purchase a home, competition between buyers is great which drives up the prices of homes. If you are reliant on needing to sell your home in order to purchase your negotiation power may be lower compared to a cash offer or subject to finance deal.
It’s true in this market it isn’t likely that your home would be on the market long, but we are seeing upwards of 5 offers coming in at a time on properties, and the owner is going to choose the one that best suits their situation.
Also, should you buy first, you could be at risk of overestimating the selling price of your current home and find yourself in a financially difficult situation upon settlement of your home.
Should you possess a mortgage on your existing property, you'll be required to manage two loans, or resort to expensive bridging finance or a deposit bond, in order to purchase prior to receiving the proceeds from your sale.
Assess your financial position first, and make sure you have a plan should the worst occur.
Selling a property first
Advantage of selling a property first
Selling your home first removes the risk of paying two mortgages at the same time and trying to find ways to make ends meet. You know exactly how much you’ll have to spend on your new property which removes the risk of accidently buying a property you won’t be able to afford.
You are also in a stronger position as a buyer to be able to offer a cash or finance contract and a faster settlement. This could be way you are able to beat all the other offers on the table.
Disadvantages of selling a property first
However you are also now in a time pressure to find another property to move in to. If you aren’t wanting to rent or store your furniture whilst you stay with family or friends, you might feel pushed into buying a property that isn’t quite right for you.
You need to budget for the possibility of finding interim accommodation and then move twice.
So what do you do?
Speak to your trusted Property Partner at The Agency. They can help guide you on the potential sale price of your home, update you on properties coming to market and help advise you on what may be best for you.
Also take the time to speak to a finance specialist like the team at Mortgage & Finance Solutions WA who can take a deeper look into your situation and give you a finance health check.