With constant changes in property prices, it is vital to keep updated on what your property is worth in the current market.
Doing regular check-ins on your property to ascertain its value is just as important, if not more important, than the regular checks you do annually on your various insurance premiums to ensure you have the best deal.
Your property is probably your most valuable asset, so knowing what it is worth is critical to your wealth well-being.
There has been a resurgence in the property market over the last few months. Despite rising interest rates, home buyers are still out in force in the marketplace with a strong fear that they may miss out if they don’t purchase now. A shortage in rental supply is seeing some renters now looking to buy their own property to get off the rental queues and treadmill. Plus, a strong rebound in net overseas migration has lifted housing demand. Combined with a lack of properties on the market, these factors are helping to drive prices in an upward trend.
“Home prices in the combined capital cities have risen 1.34% in the past three months, the strongest quarterly growth since the December quarter of 2021,” PropTrack Senior Economist Eleanor Creagh said.
Sydney - increased 2.94% this year, up for the sixth consecutive month in May – a further 0.58% and 3.03% up from their low in November 2022.
Melbourne - fastest monthly growth in May since February 2022 at 0.22%. Prices up 0.38% from their low point in January 2023 after four consecutive months of gains.
Brisbane - Rising 0.33% In May, have risen for five consecutive months.
Adelaide - May a new high, rising 0.58% compared to April and 2.64% year-to-date.
Perth - Grown 3.07% so far in 2023, with 0.64% growth in May making it the strongest performing capital city market year-to-date.
Canberra - Recorded the fastest monthly growth of all markets in May, rising 0.65%
So, if you haven’t had a recent appraisal done on your property, or if you have been thinking about selling but have been hesitant, now might be a great opportunity to find out what your property is worth in the current marketplace.
With a lack of supply in the property market, sellers are currently benefiting from less competition, which is helping to drive prices.
“Market conditions have recovered following five consecutive months of price growth, driven by stronger housing demand relative to stock on market” Eleanor Creagh PropTrack Senior Economist
The easiest and most effective way to find out what your property is worth is to have an obligation free appraisal on your property by a reputable real estate agent. With expertise and knowledge of the current property market, plus useful market comparisons, your Smile Elite local agent can provide valuable guidance so you are fully informed.
Key reasons for having regular appraisals:
1. Accurate Valuation/Pricing: Property appraisals provide an objective and professional assessment of the property’s current market value, allowing you to understand your property’s worth and price it correctly should you decide to sell. Overpricing may lead to less buyer interest, while under-pricing could mean you miss out on potential profits. Regular appraisals help you stay informed about real estate market trends, including fluctuations in property prices in your area.
2. Property Sales and Purchases: Buyers want to ensure they are paying a fair price for the property, while sellers need an accurate valuation to determine a reasonable asking price. If you decide to sell, a recent appraisal can give you solid footing when negotiating with buyers.
3. Home Improvement Impact: If you’ve made significant improvements to your property, regular appraisals can help determine the impact of these on your property’s value.
4. Mortgage Lending/Refinancing opportunities: Lenders require property appraisals before approving a mortgage or refinancing application. Appraisals help lenders assess the property’s value to determine the loan amount, loan-to-value ratio, and associated risks.
5. Financial Planning: Property appraisals provide homeowners with an understanding of their net worth and assist in financial planning. This is a vital component when assessing overall asset allocation, retirement planning, or securing loans using the property as collateral.
6. Insurance: Home insurance policies are often based on the value of the property, so it is vital to know what your property is worth to ensure correct coverage.
7. Estate Planning and Probate: The valuation of a property is necessary for determining inheritance tax, distributing assets, or settling disputes among beneficiaries. Similarly, in cases of divorce, an updated appraisal can ensure a fair division of assets.
8. Property Tax Assessments: Local government authorities rely on property appraisals to assess the value of properties and calculate property taxes accordingly. An updated appraisal can ensure you’re paying the correct amount.
9. Investment Performance: Regular appraisals can help you track your investment property’s performance over time by providing insights into the property’s appreciation, rental income potential, and overall market trends to aid informed investment decisions.
10. Dispute Resolution: Appraisals are valuable in resolving property-related disputes, such as divorce settlements, or legal conflicts, A neutral and unbiased appraisal report can serve as a foundation for negotiating fair settlements or presenting evidence in court.
Ultimately, regular appraisals simply offer peace of mind. Knowing the worth of your property can give you a clearer picture of your financial health and security, helping guide your future financial planning.
Acknowledgments: realestate.com.au, Lisa Calautti, Property journalist, PropTrack senior economist Eleanor Creagh.