Surprise Surprise, after a record Christmas spend, we’ve been wacked with our 9th consecutive rate rise. Inflation is running like Usain Bolt in 2009 and although that sounds fun, it’s the leading cause of increase. Until that’s under control, we’re destined for interest rates “to infinity and beyond”. But for now, there at 3.35%
What do I think it will take to slow inflation? I’ve got 2 words for you. Mortage cliff. Customers who had home loans in the good ole daysof 1.9% are now cueing up to re-fix a loan with a rate starting with a 5. So, what does that mean for house prices? God knows. Anyone (with a credible reputation) that is bold enough to make a prediction, speak up or forever hold your peace. But I am brave enough to say this, house prices are flat lining. Not fully dying, but like a little bit. Going sideways at least. The good news is from where i’m sitting, vendors that are prepared to listen to their agent and take on feedback and price their properties accordingly are still selling, quickly and for good(ish) prices.
Our office has sold 9 properties in the last (i’d like to say 9 days as it flows better and im in sales) 12 days, meaning that there’s still buyers out there, and if they see value, they will buy. period. The reasons to buy are always constant and that’s never going to change, Relocating for work, upsizing, downsizing death, divorce, debt.
Granted we are starting to see a few people come forward that say “finances are getting tight, we’d like to move a property on”, but it’s nothing as dramatic as episode 3 of “The last of us”. The supply is still in check. Demand isn’t what it was, but it’s ok. And unless that changes dramatically I’m not convinced we’ll see more than a 5-10% house price pull back in 2023.
If you’re thinking of selling, there is no good or bad time, the market is the market. But at Geelong Real Estate Co we have some strategies we can use to keep days on market short and prices high. So, if you’re thinking of buying, selling, leasing or referring, as always, we’d love to help.