Are house prices going to keep rising? What about interest rates, will they fall this year? Should I buy now, or wait? If these are the questions keeping you up at night , don’t worry – everyone else is wondering the same thing.
The thing is, house and unit prices reached record levels across Australia last year so buyers like you may well be thinking it’s best to wait until they drop. But the timing of ebbs and flows in the property market can be hard to predict because they are impacted by so many things.
Equally tricky to be sure of are the rises and falls of interest rates. Currently, economists are suggesting that interest rate drops could occur this year, so many buyers may be sitting tight until that happens. But what if they don’t? And what if, while you’re waiting for a minor decrease in interest rates, house prices continue to go up?
The housing market is impacted by many factors, the main one being supply and demand. Both house prices and interest rates are cyclic – they go up, they go down, as do the number of cashed-up buyers in the market at any given time. So the contradiction to lower house prices and interest rates is that you may end up in competition with an increased number of buyers – which in itself can create a seller’s market. Essentially, waiting for market conditions to become more favourable is a risk that may not pay off.
The answer is, if you’re ready to buy don’t sit around waiting for house prices or interest rates to drop. If you are buying a home or a long term investment, the right time to buy is when you are ready.
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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