Having now passed the mid point of the year and importantly the winter school holidays (where a record number of people left the state (completely understandable and expected really!), we are now seeing a gradual rise in activity: more properties are being appraised, some are being re-listed from another Agency, and more buyers are entering the fray with loan pre-approvals.
As expected in an environment of rising interest rates, there is caution from both sellers and buyers, however many see the current cycle as an opportunity to buy far better than what has was the case in 2020-21 with less buyer competition than previously. Buying property should be viewed as a long term strategy and as is often repeated, cycles that are in favour of buyers are few and far between. The fundamentals still point very favourably to existing property given the shortage of housing and the challenges that the building industry is facing. There has been a noticeable shift away from ‘renovators delights’ towards ‘turn-key’ renovated homes. A record number of overseas students have recently applied to study in Victoria, which again, will fuel the demand for housing and this will invariably be followed by an influx of people wanting to permanently migrate to our State.
When it comes to where people need to live, there is only so long people can put their plans on hold. Whether it be needing a larger home for a growing family or downsizing, these are decisions that can’t be put off indefinitely. As people become comfortable with the reality that interest rates have moved (as they invariably do), decisions to move into a more suitable property will be made. We anticipate the usual Spring frenzy will be more tempered but we do expect acceptance of the current environment and therefore activity.
Given the more tenuous state of the market, there are definitely more questions surrounding the best method of sale. In short, there are many different options and strategies that you can talk through with our office that will work for your situation and your property. Gone are the days where it appeared to be a one size fits all approach although private sales are still by far the principle method of sale in our region with some hybrid versions appearing. The recent selling campaign for 48 Wedge Court, Kyneton produced 81 enquiries; 63 inspections and a 3 corner contest which resulted in a sale price of $1,180,000 above our initial estimate of $1,000,000 – $1,100,000.
If you’d like to find out more about the property market, or would like to chat about your current situation, please don’t hesitate to reach out at any time.
If you are considering taking the next step in your property journey, please feel free to reach out — we are here to assist.