What every homebuyer needs to know this Spring
Over September’s first two weekends the Real Estate Industry of Victoria (REIV) recorded more than 1,202 auctions. 758 properties sold, 598 at auction, with 331 passed in. 160 properties were sold before auction with 0 properties selling after auction. The clearance rate averaged 70.5%, just up on Augusts 69%.
The exciting Spring market is here with a jump in the number of properties going to auction, which usually continues to rise right through to the start of December.
Last year it was a real boomtime because we were busting out of our notorious long lockdowns. This Spring will be more of a slower build, with some potential sellers still a bit shy because of easing values.
What Buyers need to know about interest rates
With last week’s interest rate rise the average variable mortgage rate will be around 4.51%, up from just 2.41% in April. This pans out to monthly repayments of about $2818 on a $750,000 loan. This is where rates were in 2015. According to CoreLogic the RBA (Reserve Bank of Australia) thinks inflation will peak near the end of 2022.
Following this, interest rates will level out by August next year, then are likely to drop down a bit.
Buyers have ditched fixed rate loans
New data (ABS) shows fixed rate loans have almost disappeared.
A year ago fixed rate mortgages accounted for 45% of new lending, but that’s dropped to only 5.5% in July this year. Its a huge shift. The change of course is higher interest rates. Fixed rate loans are being replaced with variable rate loans.
Homes are taking longer to sell
Average days on market across winter were up to 33 which is an increase from the low of 20 days in November last year, when the Spring market was running so hot. Sellers this Spring will have to be listening to buyer feedback and be flexible on price.
This is where it pays to have Buyer Marketing on your side – with our complete experience in negotiating through and cutting the best possible deal for you!
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