The housing market is slowing down and housing values could fall by 20 percent over the next year and a half before recovering somewhat in 2024 as mortgage rates fall is the recent prediction from one of Australia’s big four banks.

What is causing the real estate market to fall?

The culmination of global events such as the war in Ukraine, supply chain issues on goods affected by natural disasters such as floods, and a shortage in the workforce, have fueled inflation in quick time both in Australia and around the world.

With Australia’s inflation rising at a rate not seen since 2001, the cost of living is paramount for so many Australians as we’re met with increased expenses such as higher grocery bills, the rising cost of fuel plus the RBA’s cash rate increase aimed towards slowing inflation and reducing the cost-of-living pressures into 2023. As a result, the monthly mortgage repayment on an average Australian home loan of $600,00 has increased by $476 per month according to PropTrack data.

Wages in Australia struggle to keep up with rising costs despite the recently welcomed national minimum wage increase by the Fair Work Commission.

What does this actually mean for spring real estate in Berwick, Narre Warren, Pakenham, and surrounds?

For spring real estate in our local area, it is not all doom and gloom. First National Neilson Partners have seen 22 sales over the past month to date; up by 18 from the same time last year, and regardless of whether you wish to focus on the negatives broadcast by the media or choose to look at the opportunities that await, as we transition into spring, real estate’s busiest time of year, we can expect those looking to sell and buy continue this trend.

Home buyers spoilt by choice

Potential purchasers are spoilt by choice with the increased number of new properties currently on market and entering the market offering a variety that has not been available for some time. This is providing would-be purchasers a level of comfort that they have time and flexibility to ensure their purchase best suits their circumstances, both short and long term, and eliminating the desperate need for a quick purchase as seen with the intense bidding and panic buying last year. Most importantly they are fully informed and committed to their potential property.

Affordable options for first-home buyers

For the first home buyer, affordable options exist locally with homes such as 22 Springvalley Way, Narre Warren South or 7 The Glade, Hampton Park plus a number of house and land packages and brand new homes eligible for the First Homeowner Grant located in Officer, Clyde, Clyde North, and Hampton Park.

Perfect for first home buyers 1 Elsa Place, Narre Warren

Post COVID-19 providing better value for home sellers?

For sellers, the time to change, upgrade, or make that tree change has never been more appealing. In our post-pandemic world, flexible workplaces still provide the comfort to work from home, reducing daily commutes and the softening of the market provides better value and a greater variety of property to inspect plus a favorable purchase price.

Recent sales in Pakenham Upper, Beaconsfield Upper, and Belgrave South offer unsurpassed lifestyle opportunities for the lucky purchasers, while 14B Latta Road, Nar Nar Goon which sold in August 2022 achieved the record price for a vacant allotment of 1-acre land in the area.

Record sale price for the area achieved for 14B Latta Road, Nar Nar Goon

Demand for rental property is at a record high

The rental market continues to experience a distinct shortage, both locally and Australia wide with the demand to lease a home at a record high. This demand coupled with an absence of stock has seen rental rates rise to record levels creating favorable conditions for investors or potential investors to return to the property market and begin building their investment property portfolios once again.

Opportunity awaits!

No matter your expectations when it comes to real estate, our advice couldn’t be clearer. Work within your budget, do your research, and take your time to make the right decision. Opportunity awaits and our local real estate agents and property managers are here and ready to help and guide you on your way to achieving your real estate goals.