Market Drivers
The sun is shining, the flowers are blooming, the birds are nesting and the bees are buzzing, which can only mean one thing: Selling season.
Late winter and early spring are two of the most popular times of the year to sell your home, as buyers emerge from hibernation and compete for the influx of homes on the market. The increased supply means greater choice for buyers, while the surge in demand can result in better prices for vendors. Win win!
However, there are signs that this could be one of the best seasons ever for sellers. There are a number of factors all combining to entice investors – both international and domestic – towards bricks and mortar, consequently driving up prices.
Low Cash Rate
The current cash rate of 1.50 per cent has resulted in very favourable conditions for buyers (and therefore sellers). As the Reserve Bank of Australia’s Philip Lowe noted: “The rate of increase in housing prices is also lower than it was a year ago, although prices in some markets have been rising briskly over the past few months”.
With home loan repayments easier to manage, the property market has been made more enticing for buyers, not to mention the omnipresent fact that the advantageous rates won’t last forever!