Ninja in a Blazer – [Video] September Market Update
October 8, 2023Ninja in a Blazer – 30th January 2024
January 30, 2024This is it, in a matter of weeks we will be celebrating Christmas and soon 2024. I love using this period to reflect on the year and all the great things that have happened and experiences we have had. I also reflect on lessons that I have learnt and get myself ready for the new year. As this is the last letter for the year (the next one will likely be in February) I wanted to wish you in advanced a Merry Christmas & a happy new year.
Did the recent rate rise impact the market?
The question many sellers have asked us, and we know it’s likely on your mind also.
The answer is Yes, the recent raise has made buyers more cautious about the market and has reduced buyers’ urgency and numbers of visitors at many open homes. On average we are seeing up to 30-40% less buyers at open homes compared to before the rate rise and in relation to this the number of offers being received has also reduced. However, it is not bad news as we always say all you need is one serious buyer and the results that we have been getting since the rate rise are still towards the PEAK of the market. It will however be interesting to see what will happen next year as buyers come back from the holiday period.
The year in review
Since the 3rd of May 2022, the RBA has announced 13 rate rises (four 0.50% increases, nine 0.25% increases), taking the cash rate to 4.35%, making it the one of the fastest interest rate rises in Australia’s history and the second highest in terms of total percentage increase.
In 2023, we’ve seen buyers show all the emotions, from apprehension to FOMO, mainly feeding off the back of what the mainstream media is reporting. The one thing we do know is that Australia’s obsession with property never waned and buyers are simply expanding their search areas to find more matches in their ever-reducing budgets in the hunt for the perfect property, however, with sellers’ apprehension with selling, stock levels have rarely been lower.
Is it too late to go to the market?
It is likely by the time you received this letter buyers’ activity would have significantly slowed down due to the holiday season where buyers are either busy with family, on holidays or suffering from “buyers’ fatigue” traditionally we have found that buyer’s activity will remain lower till the first week of January where it will start to peak. In fact, realestate.com.au have shared their annual stats on buyers activity and it has shown that January has the highest amount of active buyers looking at their website.
For clients that are ready and wanting to sell our advice is to contact us anytime including during the Christmas period as our team will be around and working so we can provide you with the advice, strategy, and a favourable timeline so you are ready to go on the market. We often find that January is one of the best months to sell to gain the best price, as we find there can be less properties on the market and people with more time to house hunt due to school holidays and breaks from weekend sports.
Once again, if we don’t speak to you before the new year, we want to wish your family and you a Merry Christmas and a great start to 2024, also if you need any advice during this period, please do not hesitate to pick up the phone to call, sms or email we are always happy to help.
