There are three main reasons why sellers are holding off putting their property on the market:

1. The buy before you sell conundrum

For many years, and definitely when I was first in the market, vendors were encouraged to sell their home before they purchased their next property. After all you didn’t want to be paying two mortgages. However, with the shift of market, many sellers are trying to buy before sell their property, which in turn is holding up the flow of supply in many markets across Australia.

2. Price growth

Price growth expectations are seeing potential sellers sitting on their hands in anticipation that their property will accrue more capital growth.

3. Investors short of choice

Savvy investors are fluid in the investment choices they make and traditionally they would sell if another asset class such as the share market, term deposit and bonds offered a higher return on investment. However, these other asset classes are under performing at present.

The combined capital growth and income return for residential property in Australia and the security of bricks and mortar are currently more attractive to investors that alternative investments. However, despite these three limitations in listings, home owners are still reaping the benefits of active markets, with Sydney (11 per cent), Melbourne (8.5 per cent), Brisbane (3.1 per cent), Adelaide (3.6 per cent), Canberra (6.1 per cent) and Hobart (2.1 per cent) all experiencing house price growth.

While investors may not be selling, they are still buying. Investor activity will continue to move as investors look to grow their portfolios, which will bode well for home owners putting their property on the market this spring selling season.

So What Does This All Mean?

When considering whether now is the right time to sell, do your research to understand the level of competition in your local area. Some home owners who have not had their property appraised in the past 12 months will surprised to see the current worth of their home.