The Market Kick-off for 2024 🇦🇺
With the Australia Day long weekend upon us, this is typically the time of year when we start to see the real estate market launch into action!
How's the Local Market? As expected, there have been some positive outcomes for home sellers who were ready to hit the ground running over the festive season and at the very beginning of the new year. Currently, we are trending towards a traditional cycle of increasing numbers of new listings being prepared and entering the market. However, it's still lower than the pre-Covid "normal" stock levels.
There is, however, still inconsistency in results and days on the market. Many factors contribute to why one property is more popular (i.e., sold quicker and for more money) than another, which can be quite confusing for both buyers and sellers.
Well-presented, well-marketed properties priced strategically (neither too high nor too low) are hot favourites with buyers prepared to compete for "turnkey" properties. "Turnkey" simply means they don’t have to finish or fix anything that will cost them extra money. This is particularly relevant as banks have tightened lending restrictions, and with many buyers purchasing with a 5% deposit, they simply won’t have spare money for renovations. This is unlikely to change until we see interest rates begin to drop.
When Will That Be? Fortunately, the majority of experts and economists at major banks have revised their earlier predictions of a rise when the Reserve Bank meets for the first time in 2024 on February 6th. However, the likelihood of rate drops has been pushed out to much later in the year, with the common consensus being September. Should this timing be correct, we could well see the perfect storm timing with the normally active Spring market.
Should I Wait to Move? There is no one-size-fits-all answer. There are distinct advantages to making a move before the market becomes more volatile for both buyers and sellers. It depends on your goals and the reasons for your move. If you’re upsizing, you're more often than not better off selling during a stable or even declining market. For those looking to enter the market for the first time, the window of opportunity is definitely in the first 6 months of this year!
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