What now?

The current state of the real estate market is experiencing a mix of challenges, but overall, it is managing to remain resilient. Here are some key factors to consider.

Limited supply:

The ongoing lack of available properties in the market is helping to maintain strong property values. With fewer homes available for sale, demand outpaces supply, which creates upward pressure on prices.

High interest rates:

The increasing interest rates can have a dual effect on the market. On one hand, they make mortgages more expensive for buyers, potentially leading to a decrease in demand. On the other hand, they can encourage homeowners to sell their properties to take advantage of the high prices, thus increasing supply.

Rising cost of living:

As the overall cost of living continues to increase, some potential homebuyers may find it difficult to afford a property, which could lead to a drop in demand. However, this drop has not been as significant as initially anticipated.

Good time to sell:

In light of the high interest rates and potential for future market fluctuations, now might be a good time to sell a property, particularly if you need to relieve debt. Sellers can capitalise on the strong property values and secure a favourable return on their investment.

While the real estate market is experiencing pressures from high interest rates and rising living costs, a lack of supply is helping to keep property values stable. For homeowners considering selling, now could be an opportune time to take advantage of the current market conditions.