| Should You Sell Your Home During a Recession?
As COVID-19 continues to impact Australia’s economy, many homeowners are wondering what this means for their property value. In times of economic downturn, home prices tend to decrease. While this may be the norm, it is not that simple.
Several factors influence property prices, such as inventory, supply and demand, and interest rates. In a recession caused by a virus, it may differ from one caused financially. The value of property typically increases over time, but recessions often bring fewer buyers and an easing of home prices. Therefore, if you don’t need to sell your home, waiting until the economy improves may be a good idea.
However, some homeowners may need to sell due to personal circumstances or financial pressures. If you must sell during a recession, focus on how you can add value to your property and maximize your sale price. Decluttering, cleaning, fixing broken fittings, painting walls and floors, creating outdoor living areas, and more are all inexpensive ways to add value.
Pricing your home correctly is essential in any market, but especially in a recession. You need to be realistic about the potential sale price of your home. Often the major reason a house doesn’t sell during a recession is an inflated price. Cash-strapped buyers will be price-sensitive and reluctant to buy a renovator or any house that needs a lot of work.
Making your home move-in ready during a recession is also crucial. Buyers will want to save money and time by purchasing a home that they can move into immediately. Cash-strapped buyers may not have the extra capital to renovate a cheaper home.
In conclusion, the decision to sell your home during a recession is a personal one. Be realistic about the potential sale price of your home, and focus on adding value to get the most out of your sale. Buying another property in the same easing market may also be a wise move.
Disclaimer: Although all care is taken. We do not give any warranty whatsoever to the accuracy of any content. This is not meant to be financial or professional advice and is only of general nature. You must seek professional advice before taking any actions. The above information comes with no warranties whatsoever. We take no responsibility for any actions you may or may not take. All content is of general nature only and is NOT to be taken as advice whatsoever