Nathan’s Market Wrap-up

Hey there! We’re a quarter of the way through 2023 and things are definitely heating up in the property market. While experts predicted a surge in distressed selling and big price drops, low stock levels have actually kept things pretty resilient. In January and February, buyers were a bit hesitant and there were way more inspections required to secure a sale.

But now that the announcement rate rises are coming to an end, buyers are feeling more of a sense of urgency to buy again. We’re seeing more enquiries, more inspections, and even more offers being made. Of course, people still prefer new or move-in ready homes since building costs and labour are still on the rise. But if you’re a savvy renovator, there are some great opportunities out there for you to snag a good deal.

We think the market will stay pretty steady for the next 3-6 months, but after that, we might start to see the full effects of the rate rises. For homeowners with a $600,000 mortgage coming off a fixed rate, payments could go up by over $300 a week. That means people will have to find an extra $500-600 per week before tax just to maintain their current lifestyle. But Aussies are pretty resilient, and as long as unemployment stays low, there’s always the opportunity for second jobs or overtime to boost incomes. So, what’s going to happen to the property market when the fixed rates come off? We’ll just have to wait and see!