Where Is The Market Going?

Finally!

The RBA has paused the rate hikes at a cash rate of 3.60% What does this mean? Have we reached the end of the dry spell in Australian property?

For the past 11 months the economy have been plagued by rising interest rates to combat inflation, as a result we have seen property prices significantly decrease in most parts of Australia. Property in Sydney is currently down 13.4% since its peak in January of 2022.

Are we at the beginning of an uptrend? The Data seems to be pointing that way. Sydney prices in March rose 0.3% The first positive price action since the Market went into nose dive back in February of last year, and with the rate hikes paused that should be enough solidify the uptrend shouldn’t it?

There is still a couple of conflicting arguments and beliefs that i’m hearing around the market place on which way the market will go.

1. Currently as of march the sales volume is down a massive 30.6% and the rate of new listing are down 20.8% from this time last year. What i want to see is the gap between these numbers begin to close. to put plainly I want to see the sales volume increase and stock continue to decrease to further validate the uptrend.

2. In Australia during the months of January to October there was a total of $305 Billion dollars spent in purchasing or renovating property, close to 50% higher then the national average. A large portion of that debt is currently sitting on a fixed rate loan due to expire 2 years after purchasing……2023. and with the volume of debt accumulation not peaking until the middle of 2021 I believe we will have a lot of properties still forced to come to the market.

As a Buyers Agent it is my responsibility to act on the best interest of my clients, this involves knowing what to buy and when to buy it. the property market is in a pivotal point right now and no one actually knows where its going. What you can do is keep up to date with the market trends and stay well informed so you can best service your clients.

What do you believe will happen?

Jakob Keane – Buyers Agent