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To some of our home buyers, the current housing market conditions feels a bit dicey.

Interest rates have increased, and banks have toughened up on lending, which may make buyers feel less confident in making an offer on a house in the next few months. Oh, and there is also that Covid business too.

Some would-be buyers are waiting for prices to potentially fall a bit lower before making an offer. This is a reasonable, given what the media are saying about house prices flattening (phew!).

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We reflected in our team meeting this morning that the next three months is prime time for home buyers, especially those who are sitting on pre-approvals

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Has Christmas come early for home buyers?

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More houses equals more choice for buyers

There are few reasons for this. Traditionally there is a low housing stock at this time of year, however we may see investors sell their portfolio to avoid the cost of tax changes and healthy homes compliance, which means more houses come to market.  This means an increased supply of houses to market, and more choice for buyers.

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Less competition when making an offer

Furthermore, the number of buyers going open homes have dropped dramatically, as buyers wait to see what the market will do or, are unable to secure a loan due to the LVR rules. An agent we spoke to had two open homes last weekend, and no one through. This is a huge change from August this year, when 50 groups on average would cram through the doors, and sellers were flooded with offers. While this sea change is a bit grim for the agent, and indeed the seller, this is Christmas come early to buyers. Buyers now have less competition, which would have previously driven prices up, and potentially priced them out, earlier in the year.

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Conditional offers accepted more

Buyers also have more choice when it comes to type of offers they can make on a property. Usually, the rule of thumb is that you'd have a better chance of success with an unconditional offer, when making a bid in a highly competitive market. Now that that competition has dropped off, conditional offers are now being seriously looked at.

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In our opinion, it is a buyers' market right now. Christmas has come early.

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‍If you are sitting on a pre-approval, now could be the time..

Get in touch today if you would like your turtle doves in a row for your house buying journey, in Summer 21/22.

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Shona.

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About Shona

Hi, I’m Shona. I have recently joined the Velocity family as their communications and marketing support person. Designing effective communications in a complex industry such as Finance is a worthy challenge. Finding ways to bridge gaps between complex financial information, and the everyday needs of people trying to navigate that world through informed choices, is something that I relish. I love deciphering and disseminating the expert knowledge and ideas of our clever team, into simple messages that speak directly to our clients, who are hungry for more knowledge and better understanding. In my outside life, like others in the team, I have a passion for the outdoors, hiking and mountain biking. I also train in martial arts, and have been known to wield a sword on occasion.

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DISCLAIMER:

Before you make any decisions, discuss your situation with an adviser from Velocity Financial, and seek advice from professionals, such as a lawyer and accountant, to find the best solution for your unique situation.

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