Thinking about selling or buying property right now? You may be feeling a little uncertain given the variability in reports and messaging about what the current and predicted property market conditions are or will become.
Earlier this year property prices we predicted to fall as much as 11% by the end of 2023, caused by the downward pressure being applied by increasing cash rates to stall inflation. The RBA left the cash rate on hold in April but increased it in May, and all of Australia’s big four banks passed on this 25 basis point rate hike in full to variable-rate mortgage holders following the RBA’s May decision.
The latest Proptrack report suggests the property market, with Sydney leading the way, is starting to rebound. However, premium lifestyle markets in regional areas continue to decline having been “hardest hit by softer market conditions and rate increases,” according to CoreLogic Australia economist Kaytlin Ezzy.
It is difficult to predict whether market confidence will return in 2023 or will our uncertain conditions last through to 2024?
Many Australians are feeling anxious about their future with over 80,000 people facing a mortgage cliff by 30 June 2023 as their low-interest, fixed-rate mortgage terms obtained during the previous economic tightening cycle and COVID pandemic period end, and new increased mortgage payments based on current interest rates start to apply. For some homeowners and investors, monthly mortgage payments are set to double.
With so many external variables affecting your property decision-making at the moment…
As a Vendor, you might be wondering…
- Do I wait and sell in the spring when the property market typically performs well and people are wanting to get into their new homes before Christmas… or
- Do I sell now, pre-empting increasing the competition with more properties coming onto the market as people finding it difficult to afford their increased mortgage payments decide to sell? Keep in mind getting your property onto the market can take up to 4 weeks.
As a Purchaser, you might be wondering…
- Do I buy now avoiding more interest rates hikes and getting into the market before property prices take off again… or
- Do I wait and to see what an increase in the number of properties on the market will do to prices?
Unless you have a crystal ball to predict the future, it’s always best to make sure your decisions are based on what is most important for you and your personal and financial circumstances.
Whether you are buying or selling, at Coast Property Group we are here to help take the stress out of the process and help you bring your property dreams to reality.
Contact us for a complimentary appraisal or help you find your next home.