The Property Market Is Bouncing Back - But What Does This Mean For First Home Buyers?
In This Week's How's The Market | Edition 51
The Property Market Is Bouncing Back - But What Does This Mean For First Home Buyers?
20+ Groups With Offers At The First Open
Multiple Wow Factors In One!
The Property Market Is Bouncing Back - But What Does This Mean For First Home Buyers?
Over the past few months, the property market has begun to recover and recover fast. Properties are selling for well over the asking price and the reserve at auctions which is a very troubling sign for first-home buyers who are attempting to enter the market. Let’s break down why.
With interest rates continuing to lift and inflation at record highs you would think the demand for housing would be at its lowest, however, property prices are continuing to increase. If you are a first-home buyer looking to enter the market and are waiting for interest rates to drop to give you a better chance at buying, you could be in for a rude shock. This is because demand is still currently so high due to low stock levels and record high net overseas migration along with myriad other reasons, this means when interest rates stagnant or decrease, demand will accelerate further allowing property prices to increase.
If you are a first home buyer you must be wary of this dilemma - should you hold off now for a lesser interest rate but potentially pay more for the same property? Our advice - buy when you are ready and comfortable with the repayments and don’t assume interest rates will drop anytime soon.
What The Agents Are Saying
Melbourne & Geelong
Across Melbourne and Geelong, the agents are reporting a similar sentiment. The limited supply is causing prices to very often go above asking and reserved prices and properties are going under offer quickly.
In the fringe suburbs, agents are still seeing 20+ groups through properties for their first open (even though last weekend was a long weekend which is typically quieter), with 10+ contract requests for good properties.
Again, we saw properties have offers made at their first opens that have now been finalised. This is showing the level of demand still present in the affordability belt.
The Wow Factor!
767 Mount Macedon Road, Mount Macedon
Multiple Wow Factors in one!
✅ Incredible fireplace
✅ Listed as a property of significance in Victoria
✅ Built in 1886 in the elegant Indian Colonial-style
✅ Incredible garden - check out the excerpt from the copy below:
“The garden has many significant features, including the ‘Temple of the Four Winds’ designed by Joan Andersen in 1932, the Roman Baths, Summer Pergola and a significant greenhouse.”
Price Guide: $9.4 - $10.34m
In The Media
The cash rate has reached a ‘tipping point’ for the property market’ Now what?
A difference of opinion - could a double downturn be caused by interest rate spikes?
Final Thoughts
Interest rate rises and inflation are not having the impact that many economists predicted on the housing market. A heavy undersupply of properties is causing prices to increase across many cities within Australia which is in turn making things more difficult and expensive for first-home buyers.
Thanks for reading this far!
We value feedback and if you have any suggestions on what you would like covered in the future please email me at tristan@tomii.com.au
Happy Buying!
Note: This is my opinion, please seek your own expert advice when making decisions.
