20 Mar Has the Market Stopped Falling? Key Indicators Show Stability and Even Growth
Key indicators are showing stability has come to prices, in some cases, we are seeing a slight growth In Jan & Feb v’s 2022 Oct-Dec quarter. What I have seen is historically low stock levels (approximately 20% lower than normal levels). Interesting to know thought-out my 20+ years of selling when rates have risen, open-home attendees generally fell, and right now that is not the case and enquiries and open homes attendee have significantly grown year on year.
I was asked the other day what’re the most common questions I get from prospective sellers, for me it can be simple to respond however the answer depends on your own circumstances and a myriad of factors. So this week I thought I’d share a couple of different questions and Answers:
It’s not the best time to upgrade my home or potentially spend more money?
In this example, this family were looking to upgrade from their 3-bedroom home in Seven Hills and move to Castle Hill searching for 4 beds 2 bath.
Seven Hills: Current value 1.1 miL – 2021 Price 1.25 mil (150k less than the top of the market)
Castle Hill: Current value 1.8 mil – 2021 Price 2.2mil (400k less than the top of the market)
Change over price 700k – Change over price 950k
In the scenario shown above the owners would be 250k better off upgrading their home now than why the market was booming in 2021.
Is this the best time to consider over 55’s or a Retirement village?
In this example I really try to understand what the owners’ needs are, do they want less maintenance? to move closer to family? or possibly a sea change/ tree change? Whilst this type of decision can be almost irreversible financially it’s really about what’s on offer and if find most owners don’t know about a website called https://www.villages.
Is now a good time to buy an investment property?
A huge factor in the decision to buy an investment property is demand, and right now demand tenants to lease/rent properties is high. Two of the major factors involved in this discussion is:
1. Immigration: We have had a Nett increase 21/22 – calculated in June 2022 of 171,000 growth in population.
2. The cost of Building/construction growing 20-30% has slowed new construction, meaning home approvals have dropped and we are not building enough to support demand. This increases demand and thus the following stats: last 12 months house rental values have grown approximately 10% and apartments have grown 2-3%
Hopefully, these questions and answers help with any decisions or conversely if you have a specific scenario that you like help with, please feel free to reach out.