A leading real estate economist has predicted the busy spring period to tilt in favour of buyers as more properties hit the market and rising interest rates cause a price correction.<\/p>\n
REA Group senior economist Eleanor Creagh has predicted economic uncertainty may cause buyers to be more hesitant than in turbo-charged seasons of recent years.<\/p>\n
“But this year, interest rates are continuing to rise at a fast clip and home prices are falling around the country. The rapid pace of rate hikes is seeing the cost of servicing a mortgage increase, reducing borrowing capacities and weighing on confidence and buyer sentiment,” she said.<\/p>\n
“While the labour market is strong, with unemployment at levels last seen in the 1970s, consumer confidence has fallen sharply, indicating that many are feeling a sense of unease about the future.<\/p>\n
“There’s still a lot of uncertainty around future borrowing costs, cost of living pressures, and how far and fast the Reserve Bank will raise the cash rate.”<\/p>\n
But Ms Creagh expected the relatively small pool of buyers that did venture into the market would benefit as competition for properties decreased.<\/p>\n
“Market conditions have shifted and sellers no longer have the upper hand. Buyers have more time to make decisions, with homes spending longer on the market,” she said.<\/p>\n
“The increase in listings could be good news for those looking to purchase. There’s a lot more choice and less competition, which could create opportunity for some.<\/p>\n
“And with expectations of price falls abound, this may also prompt some sellers to bring forward their selling campaigns before further falls, keeping new listings elevated.”<\/p>\n
Despite the decrease, Ms Creagh expected buyer interest to remain above pre-pandemic levels even after falling slightly in recent weeks compared with earlier this year.<\/p>\n
“It’s also above the average level of potential buyer interest seen in August over the past three years,” she said.<\/p>\n
“However, properties are taking to sell, and with prices falling, vendors are having to adjust expectations in line with market forces.”<\/p>\n","protected":false},"excerpt":{"rendered":"
A leading real estate economist has predicted the busy spring period to tilt in favour of buyers as more properties hit the market and rising interest rates cause a price correction. REA Group senior economist Eleanor Creagh has predicted economic uncertainty may cause buyers to be more hesitant than in turbo-charged seasons of recent years. […]<\/p>\n