Brighter Buying

Is now a good time to buy?

by Kate Watt, Marketing Manager 9 February 2023

As interest rates have risen and home values have dropped, buyers have understandably cooled their heels.

But should you follow the herd sitting on the sideline or chart your own path?

It depends on your personal situation. But finance-ready buyers could be missing out on a prime buying opportunity if they follow the herd instead of doing their own analysis.

Buyers have some good negotiating power at present and favourable yields from rising rents can soften the rate rise impacts.

So how do you identify a good property move in the current environment?

“Opportunities will come from buying in markets with growth credentials at a time of record low vacancies and rising rental yields,” writes property buyer Kate Hill for Property Tribune. “While other opportunities will come from buying in markets which are less competitive than before, but with growth in their future.”

If your budget can withstand some more movement in interest rates, then there are several factors that may work in your favour.

“Many investors left the market during the pandemic as prices increased so much – they took the opportunity to sell at a significant profit to owner occupiers, which also further reduced the rental pool of properties,” she says.

“Listings are still much lower than this time last year for sale and for rent – and with the international migration numbers expected to increase substantially in the next year, the pressure on the housing market will increase even further.

“All of that equals a shortage of rentals and a shortage of homes generally, which will lead to increased property prices and rents.”

Thinking of your next move?  Contact us for a chat or view our current listings for sale.