With so much negativity about the real estate market, is this the right time to make your next property move?
Like anything, supply and demand play a big part in getting the best deal on a property. You want to strike when you do not have to compete with everyone else.
The residential property market can be described as a dynamic market, with the homeownership rate in Australia at 67%, with nearly 600,000 dwellings sold in 2021. This market is heavily influenced by media reports, interest rates and other economic indicators.
Today, we can see a decline in buyers’ and sellers’ appetite to transact, which is why it’s a perfect time to consider your next property move.
The property market in Sydney’s eastern suburbs is certainly not what it was in the unprecedented frenzy of 2021. Gone are the magical days of the list and sell with unrealistic record growth and 90% auction clearance rates. Today we have moved to a more conservative, steady market.
Here are reasons why now could be the perfect time for you to enter the property market.
- Buyers have more choices.
In 2020/21, property prices rose sharply, driven by the lowest interest rates and high demand.
Every listed property had 8 or 10 genuinely interested parties willing to buy. This meant properties would often sell before auction, leaving many disappointed buyers.
Today, with the number of buyers down, you have fewer buyers attending auctions and buyers have more negotiating power.
2 Buyers have more time to get it right.
Rather than rushing into buying, buyers will find more receptive vendors and more time to make the right decision.
3. Interest rate rises.
We have been on a rollercoaster of rising interest rates before. I believe, later this year, many prospective sellers and buyers will realise that interest rates are near their peak, inflation will also have peaked, and the RBA’s efforts will bring inflation under control.
4 The gap is closing.
With falling property prices, the gap between properties is shrinking, making it easier and cheaper to take a step up.
5 Investment opportunities.
While many owner-occupiers are holding off transacting, investors are lured back to the market with falling prices and rent increases.
6 Real estate is a longer-term wealth creation vehicle.
The Sydney market has historically risen and fallen over time and the long-term trend has been for prices to rise, with properties recording an average growth of 10.2% a year in the 20 years to 2017
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