It would be understandable if you’ve been watching some of the recent media coverage on the property market, (scaremongering headlines anyone?), and assuming that the value of your home is currently in freefall. The simple fact is, it’s not.
Allow me to quote Cameron Kusher, the senior researcher at REA Group, who recently pointed out that “After exceptionally strong price growth through the first two years of the pandemic, conditions have moderated as interest rates have risen. While national housing prices are 4.5% lower than their peak, they are still 28.5% higher than they were at the start of the pandemic. Buyer enquiry is also at higher levels, up 67% in January 2023 compared to January 2020.”
Cameron’s comment on buyer enquiry levels is particularly relevant, as it confirms what our team has recently been experiencing on a firsthand basis. We have seen a buyer resurgence in many parts of Melbourne, with property inspections at double the level we were seeing in December. In many cases this is producing strong competition for the limited number of available properties for sale, to the extent that some properties are selling for more than they would have in 2022.
We need to keep in mind that after nine consecutive increases in official interest rates, many buyers are viewing these adjustments as “the new norm”, particularly when they are aware that these measures are expected to be short lived. This is reflected in overall auction clearance rates that are currently tracking higher in 2023 than they were in the last part of 2022.
Not surprisingly, higher interest rates have impacted on the borrowing capacity of some buyers, particularly those looking for their first home. Loan approvals are clearly trending lower down in this demographic. However, this has created an opportunity for those first home buyers who are still in a position to purchase, along with some downsizers and investors who are often competing in similar price ranges.
This raises an important point. From our perspective there are genuine opportunities for both buyers and sellers in the current climate, particularly if you are in a position to make a move in the near future whilst these conditions continue. However it is a market where you need an experienced guide by your side to help you recognise those opportunities in what can be a patchy market.
If you need any help in putting together an appropriate plan that will enable you to make the most of the current conditions, I recommend that you talk to us now. The outlook may well have changed if you leave it until after Easter, for example.
Whether you are buying or selling, our team is ready and able to assist you, so don’t hesitate to give us a call on 9430 0000 this week to discuss your property plans.
Regards,
Ben Reid
09/24/2024 
