No doubt you are aware of the changing property market. With rising interest rates and the increased cost of living, this should come as no surprise. But a changing property market is nothing to be concerned about. It’s still a great time to sell because you’ll be selling and buying in a comparable market. You just need a good real estate negotiator on your side.
Property cycles: what they mean for sellers and buyers
People who have been buying and selling property for a long time understand that the property market goes in cycles. That’s why bricks-and-mortar properties have always been touted as a solid investment. One of the major factors affecting property market cycles is supply and demand.
Supply and demand
Commonly, property prices rise and fall in relation to supply and demand. Anyone who has ever studied economics will understand that when demand is high and supply is low, prices will rise. On the other end of the scale, when supply is ample and demand is waning, prices will drop.
That’s exactly what happens with the property market. When interest rates rise, potential buyers become nervous and demand declines a little. Therefore, there may be more homes available for sale than there are potential buyers.
We saw the opposite during the pandemic, when cashed-up buyers were hungry for property, especially in regional areas or sought-after areas like the Northern Beaches. This was in part due to the fact that overseas travel was prohibited, so these buyers chose to spend their money elsewhere. As we saw, they descended in droves on desirable property markets.
However, now that the borders are open and people are able to travel again, the market has cooled a little. Other factors that affect the property market cycle include:
- The ease of borrowing
- The cost of living
- What the supply is like in any specific area
But, there is one sector of the market that is currently still in severe under-supply and that is the rental market.
Shortage of available rental properties
Rental properties are still in high demand around the country and there is currently a huge shortage of available properties to meet the demands of the market. In fact, in Sydney, available rentals have reached their lowest level in five years. Similar situations are happening in other capital cities as well.
But, it’s not just city areas that are suffering from a lack of available rental properties. Many regional centres are suffering the same shortages with tenants queueing up to view the scarce number of properties available.
The home that you’re planning to sell may just be what an investor is looking for. That’s why it’s so important to engage the services of a knowledgeable local real estate agent. He or she will have a deep understanding of the local market and may even have a list of investors looking for properties just like yours.
Now is the time to engage a knowledgeable real estate agent
As experienced real estate agents who have been selling homes for years, we understand completely the ever-changing property market cycles. We are fully aware that the market ebbs and flows in response to various economic factors such as supply and demand.
If you are keen to put your Northern Beaches home on the market this year, you really need a good real estate negotiator on your side. You need an agent who understands the local market and can negotiate a good price for your property while ensuring that a buyer is found as quickly as possible.
Need help to sell your Northern Beaches property in this changing market?
To find out more about the changing property market and how this might affect the sale or rental of your property, please give the JDH team a call.
