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May Updates

Everyone is asking “has the market slowed yet?” 

The announcement that our inflation rate is high and interest rates will be going up steadily is making us all wonder what this will mean for the property market.  Sorry to say, it hasn’t slowed yet. Almost every listing is still advertised as “Offers Over”. And almost every buyer is paying way over asking price, especially in the $400k to $600k range. Competition is still fierce. What we are starting to see is the high end properties are taking a little longer to sell. This is the $800k plus range. They are still fetching high prices, but not so much over the asking any more. It would be good o see the market plateau now.

Some people are hopeful that those who have potentially over paid for their property, may now be looking to put them back up for sale, but I think you must remember, no one wants to pay Capital Gains tax, so most people will hold onto their purchase for a least the next 2 years, and they will wait to see if interest rates are going to hurt them. There is potential for concern if you paid say $1.2m for a property that you are only getting $800 p/wk rent on. A good Financial Planer would have laid this out for you and factored in when advising on investment purchases. 

So what’s next? I think we will see a lot of sellers quickly putting themselves up for sale. They were holding out for the Peak, which I think we’re sitting on, so now they will be worried they might have missed out.  I also think it won’t be long before the market plateaus. 

So is it a good time to buy? Well this is an argument you will hear often. If you have your finances in order and are prepared to cover any interest rate rises then today is always a good day to buy property. Generally speaking, property always goes up in value. Sometimes the market slumps and maybe prices don’t go up for 10 years, but they don’t really go down. And if you are in for the long game you should always get your money back. Get some professional advice and go in eyes wide open.

Cocktails on my beach