As property prices start to climb, listings are following suit. So if you’re hunting for a home, what does this mean for you?
If you’ve been looking at the property market over the last six to 12 months, you probably already know that while property prices have dropped, it’s been a case of slim pickings due to the drastically low number of listings.
But prices look like they are starting to bounce back, with March heralding a 0.6% increase in national property prices, according to CoreLogic. And listings are following suit.
PropTrack data for March showed new listings on realestate.com had risen by 10.5% month-on-month, making it the busiest month for new listings since May 2022.
So why has the market changed? And what does it mean if you’re looking to buy?
Property prices and increased demand
When the RBA announced its rate rise pause in April, we all let out a collective sigh of relief.
And many financial and property analysts, including CoreLogic, estimated the pause may give rise to increased prices due to a boost in buyer confidence.
But there are other compounding factors that were influencing the pricing upswing before the rate rise pause.
Record low listings, a competitive and expensive rental market, and elevated migration placed increased demand on limited housing supply.
And prices started to climb despite consecutive rate rises.
Rising prices, combined with the Autumn selling season, have seen vendor confidence pick up and property listings increase.
But how does this affect you if you’re looking to buy?
Opportunity may be knocking
If you’ve been ready to buy but haven't been able to find the right place due to low supply, now may be the time to purchase - before FOMO starts to kick into the market.
More listings mean you’ll have a greater chance to find a suitable abode, rather than sifting through the dregs.
But before you pounce on that perfect property, it helps to have your finance sorted.
Finding out your borrowing capacity and loan options are important steps when planning to buy.
And while the RBA’s pause bolstered our spirits, it’s wise to be mindful that there are a couple more cash rate rises expected.
Getting advice on the right type of loan, assessing your borrowing power, and organising your finances could make things smoother.
So if you’re keen to purchase in 2023, give us a call and we’ll get cracking on finding you a mortgage solution that will suit your individual needs.
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