After skyrocketing prices the rate of growth is now easing across Australia.
The national market has moved into a rebalancing phase, predominately driven by rising interest rates. FOMO (fear of missing out) drove buyers to make quick and competitive purchases last year. With rising interest rates and more stock on the market this trend has dampened, allowing buyers to put more focus on the property than the competition.
But not all regions are softening. Key areas such as the Illawarra continue to see steady growth in housing prices.
“Even in a softer market, good quality property still attracts strong levels of demand. Buyers need to be prepared to set a realistic budget or risk continually missing out, ” Richard Wakelin points out in his recent Financial Review article.
While there has been a slight increase in stock levels, the property market still has a limited supply compared to previous years. If you’re looking to buy we suggest keeping in close contact with agents to ensure you don’t miss out new and upcoming listings.
While buyers have to worry less about FOMO, they still have to walk the line between urgency and patience in the current market.
Ensure you know what you’re looking for in a property and what you’re willing to compromise on. Assess the property carefully and make an informed, unrushed decision.
For Buyers continued…
“Don’t feel compelled to jump at the first property. The market is far less likely to run away from buyers as it did in 2021.
Conversely, don’t become pedantic or complacent. In a slowing market many buyers get caught over-finessing and lose valuable opportunities as a result,” says Wakelin.
If you’re going to auction assess the assets value carefully
When competing at auction, buyers should look for particular nuances around the bidding process.
For example, an auctioneer who takes a high initial vendor bid compared with to the quote range, quite often indicates limited interest in the property.
A few key points from the last months statistics.
To emphasise our earlier point that while the market is slowing nationally, there are key regions, such as the Illawarra, that are still seeing growth.
The median sale price for a house is $1.31m up from last month’s $1.27m.
The median sale price for a unit us $735,000 up from $728,000.
And the median days on the market remain the same; 34 days for a house and 21 for a unit.
This shows that property prices are still rising without taking longer to sell.
The ATO identified its focus areas for this tax time. Two of the four areas relate to property investors and sellers.
These are rental property income and deductions and capital gains from property.
Assistant Commissioner Tim Loh said that “It’s important you rethink your claims and ensure you can satisfy the 3 golden rules.”
– You must have spent the money yourself and weren’t reimbursed.
– If the expense is for a mix of income-producing and private use, you can only claim the portion that relates to producing income.
– You must have a record to prove it.
For more information follow the ATO links below: