We’ve all been reading the news about how the property market has rebounded in 2019 after a period of adjustment that began in the second half of 2017. What many people may not have realized is that the recent return to growth in property prices has been particularly good news for those planning on downsizing to a more manageable, (and more affordable), property from the family nest.
During the period from mid-2017 to early 2019, the Australian property market underwent a realignment of values after several years of unsustainable growth. This was particularly apparent for those who owned family homes that were worth prices in the $1 million to $1.3 million bracket at the height of the market, as these properties experienced a drop in prices that was more significant than those properties in lower price brackets.
The result of this disparity meant that price gap between the properties that downsizers were selling and the properties that they wished to buy dropped markedly, making the financial benefits of downsizing far less appealing.
The good news for downsizers is that the rebound in the market in 2019 has seen the values of properties owned by downsizers returning to their former levels more rapidly than the properties in lower price ranges, restoring the price gap as well as the potential financial windfall in downsizing. Indeed, in some cases we are currently seeing properties in the $1 million to $1.3million range matching the price results that were being achieved at the peak of the market two years ago.
Keep in mind that the key to downsizing without stress or undue uncertainty is to obtain experienced and objective advice before you start, and to ensure that you have the support of a committed property professional throughout the entire process, both in selling your current home and securing your next at the right price and on the right terms.
If you would like some assistance in preparing to downsize with a minimum of stress and maximum financial benefits, you can call on the experience of Ian Reid Vendor Advocates at any time. Why not give us a call on 1300 400 400 for obligation-free advice today?
You’ll also find plenty of helpful tips to assist you in choosing the right way to approach the sale of your home in our free booklet, “Fatal Real Estate Traps Exposed”.