Mortgage holders breathed a sigh of relief last Tuesday when the RBA left the cash rate on hold for the second consecutive month. By all indications, inflation has passed its peak, but the fact that it could linger adds complexity to future cash rate decisions.
Relatively low stock levels over previous months have created quite strong selling conditions. As a result, we are seeing an increase in new listings hitting the market as vendors choose current market conditions as a good time to sell. We can also attribute this to the accumulating pressures of mortgage stress as the RBA’s rapid rate hiking cycle catches up with owners struggling to juggle loan payments and inflation. If you are in this situation, it’s important to seek advice as soon as possible. An updated sales or rental appraisal could be beneficial for future planning.
The good news for anyone thinking about selling is that we are seeing solid auction clearance rates. Last week Blackshaw recorded a 100% clearance, selling all nine homes either at, or prior to auction. This is versus the current market average of 73% (48% this time last year).
We are also seeing stability return to sale prices. Domain data shows that over the June quarter prices didn’t drop, rather flatlined. This is the best outcome in over 12 months, signalling that we’ve passed the price trough.
Attendance at open homes shows that buyers have not been deterred by heightened mortgage serviceability measures which has reduced borrowing capacity by up to 20% – they’re simply changing their price bracket. This is good news for anyone selling a home across the middle and more affordable end of the market.
In another welcomed sign, investors are returning to the market. According to current ABS lending indicators, investors are accounting for 34% of the value of new mortgage lending.
Experience counts in any market, especially this one. So, if you’re thinking of selling, get in touch with your local Blackshaw office.
For more information please contact your local Blackshaw Real Estate Professional.