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Is now a good time to sell? Australia's current property market update:

 
Is now a good time to sell your property? After watching house prices climb to unparalleled levels over the past few years, a lot of property owners are now asking themselves if now is a good time to sell. Read on to understand the pros and cons of selling your property in the current market. For tips and tricks on ‘How to guarantee you select the best real estate agent and pay less commission’, Click Here

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Property market update:

Over the past few years, Australian house prices have increased at the fastest rate in Australian history. From September 2020 to May 2022, house prices have increased by 28.9% according to Core Logic, which was fuelled by low interest rates and government stimulus packages to boost the economy and housing market. However on the 4th of May 2022, the Reserve Bank of Australia made their first interest rate rise, and continued to make another 9, with the last one being the 8th of March 2023, bringing the cash rate from 0.1% to currently 3.6%.

What does higher interest rates mean for the property market
Along with the obvious higher interest repayments for buyers, higher interest rates also result in lower borrowing power and serviceability. For example, buyers that could previously afford a $1 million loan, will now be closer to receiving a $750,000 loan. Banks also are now diving deeper into assessing who they qualify for a loan and they are ensuring to only give out ‘safe’ loans to people they know will be able to afford the higher repayments. This impacts the property market as buyers will now have a lower budget, naturally resulting in lower sale prices. Along as having a limited amount of buyers qualifying for a loan, there will be less competition between buyers fighting for properties.
 
What’s to come?

Since the first interest rate rise in May of 2022, house prices have decreased by 7.8% Nationally by April 2023. Many chief economists are predicting a further 7% decrease in prices by September of 2023, before the market begins to stabilise until the upturn phase is expected to begin in 2024.

So, is now a good time to sell?
We are finding many of our clients are looking to put their properties onto the market shortly, in a bid to sell before the market reaches the bottom of they cycle, which is expected to be around the end of 2023 However it all depends on personal circumstances and if you can hold out until the next uplift in the property cycle, but remember if you sell at the peak, you are also usually buying at the peak. Personally we believe now is a great time to sell then buy back in, as once your property is sold and settled, you will be buying in at a lower point of the market in a few months time.
 
Ensure you are prepared by:

Using our free agent comparison tool to find out who is the best agent in your suburb, specific for your property type. Speaking with an experienced agent in your local area will help you further understand your properties current value and how it will perform in the current market, along with local market trends.