Melbourne’s property market is experiencing its typical winter-slowdown, but the addition of consecutive interest rate hikes has somewhat slowed things down even further. In winter, we will usually see the number of listings drop off, however, clearance rates remain as high as in warmer months, if not higher with more buyers around than sellers. With the cash rate now sitting at 1.35 per cent and more rises expected to hit later this year, some buyers are feeling nervous about any large financial purchases. This has resulted in the buyer pool to soften and demand for property to ease off.
But it’s not all doom and gloom.
We mustn’t forget how thriving the real estate market has been over the last few years. Last year, the property market went up by 25 per cent and 10 per cent in 2020 – which is unheard of over a two-year period. Ultimately, homeowners are still in a better position now than they were two years ago.
And for buyers looking to enter the market, this easing of the market in certain areas gives you the opportunity to secure a really great home. If you are realistic about how much you can borrow and adjust expectations, there is definitely an opportunity to enter the property market during this time.
If you are looking to purchase or sell in the current market or are unsure if it’s the right time for you, call our office today!