Sellers who want to take advantage of the current boom need to move quickly
Sellers who want to take advantage of the current property boom should make their move before the federal election and a possible rate hike, experts warn.
Price growth has begun to slow down across Australia as more homes are put on the market, which gives buyers more power to negotiate, The Australian reported. The housing market is unlikely to accelerate again to match the price gains seen last year thanks to the rising cost of living, economic uncertainty and the opening of international borders allowing more people to access the market.
The upcoming federal election is also likely to slow the market, as buying and selling traditionally slows during the campaign as people await the outcome, The Australian reported. And Cameron Kusher, director of economic research at PropTrack, told the publication that market watchers shouldn’t expect a post-election rebound similar to the “ScoMo bounce” of 2019, which was a result of confirmation that negative gearing and capital gains taxation policies would remain the same and an interest rate cut in the weeks following the election.
“We are going to see fewer auctions and listings, as there will be a lot of disruptions going forward – Easter, Anzac Day and the election,” Kusher told The Australian. “The labour market is really strong, so an interest rate rise is looking increasingly likely to be sooner than the original Reserve Bank forecast of 2024. So there is a sense buyers and sellers need to get in now ahead of a rate rise.”
Dan White, managing director of real estate group Ray White, told The Australian that the next few weeks could be crucial for prospective sellers. Internal data from the company found that auction numbers in 2022 were 50% higher than the same time last year, with four out of five properties sold at auction after attracting an average of 5.8 registered bidders.
“What we do know is that market fundamentals right now are still helping our clients who are looking to sell,” White said. “There’s a deep buyer pool for sellers to take advantage of. Our question remains: ‘What are you waiting for?’”