One of the most popular bits of wisdom in investing is to “sell high, buy low” when you have purchased securities or stocks. This strategy offers a relatively straightforward approach to how to realise profits in the market. It may also be applicable in the housing market – selling your property at a high price and then purchasing another at a lower price.
The Seller’s Market
Prices in the current property market are at an all-time high. It is difficult to imagine that two years after the pandemic hit, housing prices will be at such a level. Even more so, the interest rates are increasing and there are signs of an impending economic slowdown. Condo resale prices, for example, are now at their peak and continue to increase. The current market we’re in is a seller’s market, when there’s high demand and people are willing to buy and pay higher prices because of limited supply in the market.
Advantages of Selling Your House During a Seller’s Market
If your main reason for selling your house is to maximise gains, there’s no better time to sell it than during a seller’s market. You can potentially sell higher than your asking price. If your property is highly coveted, potential buyers are more likely to meet your asking price or even initiate a bidding war. Listing your property during a seller’s market gives you a high chance of selling it quickly and unlocking the gains faster.
The Best Time to Sell Your SG Home
Just because it’s a seller’s market doesn’t mean it should be your main reason for selling your property. The right time to sell depends on why you decide to sell it. It may include:
- Financial Difficulties: If you run into financial trouble, can’t keep up with the mortgage, or want to reduce your debt obligations due to rising interest rates.
- Lifestyle Changes: This includes a growing family that requires you to move to a bigger house, the current house getting old and harder to maintain or renovate.
- No Significant Price Growth: The property price in your location has been stagnant for years and the URA master plan doesn’t indicate any future developments nearby to support significant price growth.
After Selling Your Home, What’s Next?
You have several options on what to do next after selling your property, including renting a house or a condominium unit, buying a smaller property from the sales of your previous house, or finally getting that dream home you’ve always wanted. How about paying for a bigger, more luxurious house, you ask?
Smart Mortgage SG can help you buy your dream property in Singapore through a home loan solution that’s tailored to your needs. As expert mortgage consultants with years of experience in helping homeowners, we will walk with you on your journey toward making important financial decisions.