The property market is a fickle thing, heavily influenced by a range of factors and variables which make it hard to know when is a good time to buy.
Significant rises in property values and thirteen interest rate rises over the past 18 months have certainly added to the level of buyer anxiety. What will happen in the next 18 months is anyone’s guess, although experts predict that property prices won’t continue to increase at the rate they have been doing.
In fact Melbourne prices may begin to trend down very slightly from now and into early 2024, although the housing shortage will hinder the extent of the decrease. Prices were down 0.1% in November despite the past quarter showing a 0.6% rise and a 3% rise for the past year.
Adding to the benefit of slight price decreases is Tuesday’s hold on interest rates. The announcement to hold the cash rate at 4.35% wasn’t surprising as the CPI for October was predicted to be 5.2% but came in better than expected at 4.9%, so inflation is heading in the direction that the RBA want to see.
The festive holiday season is creating a little pocket of opportunity for buyers right now.
With everyone’s focus on Christmas the heat is off the real estate market so with less buyer interest it flips briefly into a buyer’s market, a window to be exploited by serious buyers.
We saw similar pockets of opportunity in July 2018 and March 2020 when prices came down a little, as well as during a brief period in 2022.
So if you want to jump on the bandwagon of that slight decrease in house prices recorded in November and expected in December, skip the festivities and celebrate buying a house this Christmas instead!
Chat to us about how a property advocate can help you sell or buy in the current market with confidence. Investment buyers can receive invaluable support and guidance through our Buyers Advocacy Service, and for landlords who are selling, our Vendor Advocacy Service helps vendors achieve outstanding results.
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