In our daily conversations with buyers, we are hearing that there is still some uncertainty out there, with some buyers sitting on the fence when it comes time to act on a property, waiting to see what happens with all the variables impacting our market. However, it is important for property consumers to arm themselves with more accurate and reliable data, rather than waiting on the media reports that can be outdated. We believe that 2023 will be a great time to buy and sell real estate. Here is a brief summary of where we sit right now.
- Peaking levels of interest rate rises
- Signs of Inflation peaking/stabilising (apart from holiday spending)
- We are still in the valley of declined property values
- Resurgence of buyer activity and market investigations/research phase
- Increased number of properties launching to market
- Reluctance to take decisive action is waning and deals are happening
- Media spotlight is on old data will soon be corrected and the good news will change the perspective.
With buyers beginning to see social proof that open home attendance has increased, properties are being sold and that the market has now settled, the next 12 months will be the ideal time to transact, here are our reasons why:
- Fear and uncertainty are being replaced with forward thinking, logic and positive emotion. The smart people are now starting to pause, consider and make informed decisions with the more stable environment emerging as the key driver. The uncertainty of 2022 has subsided, and 2023 will make way for rational decisions, and more positive buyer sentiment.
- Increased buyer and seller activity will see a better balance on the supply and demand equation that will provide more confidence and assurance in transactions, resulting in less stress for all concerned. We discussed this topic in our?latest edition of Market Minutes?with John Cunningham and Matthew Lemon. Covering topics like timing the market and why now is such a nice time to transact in real estate.
- If anyone was waiting for the bottom of the market, they missed it, it happened in the 3rd?and 4th?quarter of 2022. The media have not got the data yet, as they rely on primarily settled data which can be up to three months old. The data we collect here at Cunninghams is in real time and up to date.
- The market operates in cycles and most people don’t understand them enough to know when to act, see below for our property cycle diagram.
- Owning real estate is playing the LONG game, exact entry and exit timing is less important than being IN the market and staying there.
If any of this raises questions for you, or you simply would like to discuss how we can help you with your property goals this year, please don’t hesitate to get in touch.
