It’s no secret that the Aussie property market has most certainly had its ups and downs in the recent past, especially since the crash in 2011. However, after the unexpected boom we saw in 2021, the conditions have shifted, and things are looking a little more complex this year. Property prices are at an all-time high, and the current boom is said to be linked to Australia’s cheap money, tax breaks and the existing prosperity in the country.
Recently it was reported that Sydney’s median house price has hit a record $1.6 million, which is a surge of $400,000 in the last year which is almost $1,100 per day! Currently, some experts believe that this price increase will simmer down in the next year, especially due to interest rates expecting to climb within the next few months.
But what does this mean exactly?
We’ve just seen the first interest rate rise in 11 years, with 9 News recently reporting that the first hike will kick off an “avalanche” of consecutive raises until the official cash rate is 1% by the end of 2022, and 1.5% by mid -2023. An analysis from financial comparison site Finder shows that a 75-basis point increase would cost the average borrower $3,175 this year by raising repayments by $265 per month.
In the real estate industry, rising interest rates make buying or selling a home more difficult and decreasing interest rates make buying and selling a home easier. Rising rates make homes more expensive for buyers, thereby reducing the demand for home sales. Reduced demand hurts the sellers as they then need to reduce the prices of their homes in order to attract the buyers.
The question that’s most likely on your mind at the moment, is should you take advantage of current selling conditions so you can comfortably move into the next phase of your life? Or should you wait this out and see what’s to come? One of the first points to consider here, is whether or not you are choosing to sell your current property because of the current property market conditions, or your own personal & family circumstances. For some of us out there, we needed to sell our property last week and this could be due to already securing another property, or the need to upsize due to an expanding family. And for others, you may not be in a rush to sell your home as soon as possible and are looking to release more capital before you retire. Either way, these are the factors you need to take in to account.
In every main city, Sydney, Brisbane, Melbourne & Adelaide, supply vs demand varies, and this is a key indicator of the different growth dynamics in each area. The main two culprits of where affordability has become a major issue, (yes, you guessed it) is Sydney & Melbourne. Whilst no one can predict the future, it’s tipped that the price growth across these areas will continue to slow down and wind back as the rest of this year plays out. It’s important to also understand that situations and factors will vary from suburb to suburb, so you must get to know your own local market.
If you’re seriously considering selling your home, an initial step is making sure you are aware of what buyers on the market in your suburb are looking for, and it’s helpful to have access to the funds you need to add value to your property where required.
It’s still a strong seller’s market out there, and unfinished home improvements can be a huge turn off for potential buyers, so it’s essential that you finish any remodelling projects that you may have in progress before listing your house for sale. That’s where Possibl comes in.
Our team know first-hand the stress of selling. It’s why we created Possibl; to free up your money and time to focus on what matters most.
Access up to $60,000 to cover the costs of selling your home. Plus, we’re independent meaning no tie-ins with large industry players. We want your selling experience to be more wow and less ow.
To obtain a FREE valuation on your area, please email us at email@example.com