Photo by Kat Nesterenko on Unsplash
For homeowners, the decision to sell is never an easy one. In addition to the significant emotional and logistical considerations, the potential financial implications are huge and heavily reliant on timing.
While the property market is famously cyclical, its movements are influenced by a range of different, and often conflicting patterns. As a result, picking when to make your move is like playing an extremely high-stakes game of Double Dutch. You need to find the perfect moment, when the conditions are just right, to get in and get out.
If you’ve been thinking about selling, now may seem like a good time to jump. The market appears to be strong, prices are still regularly breaking records, and they’re expected to continue going up. But a growth cycle doesn’t last forever, and missing the peak could cost you a lot of time and money.
What’s the Market Doing?
By almost every metric, 2025 was a big year for the Australian property market. National property values rose by 8.6%, the largest annual increase since the post-pandemic boom in 2021. Regional markets performed even better, with property values outside the metro areas increasing by 9.7% across the year.
Things did slow down a little at the end of the year, with monthly growth of only 0.7% in December. This was largely driven by Sydney and Melbourne, which both saw prices drop slightly over the month.
This slight softening has been linked to a couple of important developments. Most significantly, the change in expectations on interest rate moves, from multiple cuts to an imminent increase. This, combined with increasing affordability limitations, is believed to have tempered buyer confidence.
But, while the market does appear to be moderating somewhat, it remains quite strong, and prices continue to broadly trend upward. Further growth is tipped for 2026, though it’s expected to be uneven, with some locations and market segments significantly outperforming others. Though exact forecasts vary, most experts are expecting a national annual growth rate of around 5% this year.
Limited Supply is Good News for Sellers
There’s one big reason market watchers are so sure that property prices will continue to rise. The volume of properties listed for sale, and new listings coming onto the market, remains well under the long-term average. At the same time, government initiatives, like the expansion of the 5% deposit scheme for first home buyers, are driving demand.
Put simply, there are more buyers in the market, and not enough properties available for them. This imbalance in supply and demand creates additional competition for quality properties, which usually sell quickly and for a premium. Currently, this is particularly prevalent at the lower end of the market and in more affordable suburbs and regional areas.
While this makes things harder for buyers, as a seller, it creates real opportunities. It means that, if your property is well presented and in a desirable location, it will likely attract significant interest. This should provide some reassurance if you’re considering cashing in.
High Prices Worry Buyers
Given that prices are at record highs, buyers are understandably even more cautious than usual about putting in offers. They want to know exactly what they are buying before they commit, so they are doing their homework. They are scrutinising every detail and actively looking for any reason to try to bring the price down.
As a seller, acknowledging these concerns and assisting buyers to do their due diligence can help set your property apart. For example, in Ballarat, building inspections are a crucial part of the buying process and a prerequisite to any negotiations. By organising your own inspection and providing potential buyers with a clear report upfront, you build trust and minimise scope for mid-negotiation price haggling.
So… Should You Sell or Stay?
While the state of the market is an important consideration when deciding if you should sell, it’s not the only thing you should think about. Ultimately, whether it’s the right time for you to move on depends on your personal circumstances. Do you really need to move, or would you like to stay where you are?
If you want to upsize, downsize, or relocate, current market conditions are favourable, and you should achieve a good result. You may be able to achieve a higher price if you wait a little longer, but this is not guaranteed. So, it’s better to move on your own schedule, rather than trying to perfectly time the peak of the market.
If you’d prefer to stay put, all signs suggest that the market should remain strong for at least the next 12 months. In the meantime, you can rest easy, knowing your home should continue to achieve solid growth.
