Eliza Bavin* says property prices are falling, but one expert warns it may not last long.
Property prices have been taking a hit but, with interest rates surging, Aussies haven’t been jumping on the opportunity.
Buyers Agency founder Dragan Dimovski predicts interest rates will stabilise, or even fall, by February next year, at which point more buyers will become active.
Dimovski said that would mean the window to buy discounted property could end as soon as early 2023.
“That means there could be less than six months for buyers to take advantage of the current buyers’ market, where discounts of 10-15 per cent can be found with reduced buyer competition,” Dimovski said.
“People will become accustomed to the new interest rate levels, once they stabilise, just as we were comfortable borrowing and buying when the cash rate was over 7 per cent back in 2008.”
Dimovski said there were opportunities right now for buyers to get a 10-15 per cent discount on properties in certain areas compared to just a few months ago.
“These discounts are being found all over Australia, but some recent examples were homes I purchased for clients in Newcastle and just outside Brisbane,” he said.
“As we enter the spring selling season, which is traditionally busier, we will likely see a rise in listings coming to the market, which will see those discounts continue.”
Dimovski said buyers also felt they had more time to consider their purchase at the moment, but that too could be ending soon.
“The great buying opportunities we’re seeing now will be limited once interest rates stabilise next year, hence I’m advising my clients to buy before the end of 2022 if they can,” he said.
“If you buy now you can make almost instant equity, by securing that discount before prices start to rise again.”
Dimovski said more domestic buyers would return to the real estate market next year as sentiment improved, but there would also be an influx of demand from migrants coming back into Australia.
This is particularly due to the Federal Government’s push to increase the skilled migration intake, he said.
“This will only serve to underpin housing prices moving forward,” he said.
“When prices do start to rise again I don’t think it will be at the levels we saw during the boom.”
*Eliza Bavin, Personal Finance Editor, is a senior journalist focusing on economics, personal finance and company news amongst other things.
This article first appeared at au.finance.yahoo.com
