More Homes Are Coming to Market. Will Buyers Follow?
As we head towards spring, one question is starting to come up more often:
With more properties expected to hit the market, will buyers be ready to act?
The Reserve Bank of Australia (RBA) recently decided to keep interest rates on hold at 4.35 per cent. While this will be welcome news for many homeowners, buyers are still dealing with higher living costs and tighter borrowing conditions.
So, what does this mean for the property market?
Why did the RBA hold interest rates?
The RBA believes previous rate rises are still helping to slow inflation and reduce spending. However, inflation remains higher than the Bank would like, meaning future rate increases have not been completely ruled out.
For homeowners, the rate hold provides some welcome stability after several years of rising mortgage costs.
Are buyers still active?
Yes, but they are being more careful.
David Koch, Economic Director at Compare the Market, says many Australians are feeling the pressure of rising living expenses and uncertainty in the economy. As a result, buyers are taking more time to make decisions and are looking closely at value before making offers.
While demand remains, buyers are becoming more selective and are negotiating more than they were a few years ago.
Are more properties coming onto the market?
The spring market is already starting to build momentum.
We are seeing increased interest from homeowners who are considering selling in the coming months. Rising living costs, higher interest rates and changing market conditions are encouraging many people to review their property plans.
At the same time, more homeowners are contacting our team to request property appraisals and gain a better understanding of today's market before making any decisions.
Is it still a good time to buy?
Potentially, yes.
Mortgage specialist Eva Loisance from Finni Mortgages believes some buyers may benefit from increased choice and improved negotiating power, particularly in areas where the market has softened.
With more properties available, buyers may find it easier to compare homes and negotiate favourable terms.
Is it still a good time to sell?
Absolutely.
People continue to buy and sell property every day because life continues to change. Families grow, people relocate for work, others downsize, retire or invest.
The key difference in today's market is that buyers are taking their time. Properties that are well presented and realistically priced are attracting the strongest interest.
What can we expect this spring?
Most property experts agree on a few things:
- More homes are likely to come onto the market.
- Buyers will remain cautious.
- Negotiation will be more important than it has been in recent years.
- Well-presented and correctly priced properties should continue to perform well.
As Ben Burston, Chief Economist at Knight Frank, recently noted, many in the market believe we may be nearing the peak of the interest rate cycle, which is helping to improve confidence.
Final Thoughts
The RBA's decision to hold interest rates has brought some stability to the market, but buyers are still being careful with their decisions.
As we move into the busy spring season, increased listings are likely to provide more opportunities for buyers while creating greater competition for sellers.
For sellers, presentation and realistic pricing will be more important than ever. For buyers, there may be choicer and better opportunities to negotiate.
At Wakim Realty, we are closely monitoring local market conditions and helping our clients make informed property decisions every day.
If you are thinking about buying, selling, investing, or simply want to know what your property is worth in today's market, we would be happy to help.
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