10 rises in a row. 11 year high interest rate. 12 thousand dollars a year more in repayments on a $500K loan, than this time last year. Sounds dreamy right?
Well despite all of this, the real estate market is doing some “stranger things”. At Geelong Real Estate Co, sales were up for Feb (14 in total) compared to this time last year, with the highest amount of sales transactions since September 2022. Days on market for our sellers were actually declining. We saw supply stabilise and demand slightly increase.
Why? Here’s 3 reasons.
- Lack of supply, means a concentrated demand. We’re seeing would-be real estate upsizers, putting plans on hold. It’s becoming more common for people to decide that its time live within their means and to “make do” with only 2 living rooms and 1 study. *Insert tongue in cheek here.
- The circus that is the rental market. With “affordable” rental availability basically disappearing altogether, alot of people still see a 6% interest rate as a more attractive option then paying overs on for a below average rental and paying off someone else’s mortgage.
- New money! International boarders are opening up bringing in foreign money. In the last 3 weeks we’ve closed multiple deals to new Australians.
I’ve been saying for a while now that as long as supply levels remain stable the capital decline will be mild. To quote my man Warren Buffett “time in the market beats timing the market”.
There’s only one way to win in this market. Employ a great real estate agent. One that has a plan and a process to guarantee a sale in a short time with a high price. I’ve got 10 tips to guarantee a great result.
- You don’t get a 2nd chance to make a strong first impression. Buyers are choosy, do the work, present the house in the best possible condition.
- Be agressive with your price. As a seller would you rather have 15 buyers at your open home or 1?
- Create a fear of loss where there is none. VIP inspections/ pre-market viewings / compression selling.
If you want to know the rest, contact us to make an appointment.