The property market on the Northern Beaches has just come through a massive price BOOM and now the question is:
What does the future hold for the local property market?
Following a two-year period of unprecedented growth (29-40% depending on your postcode and property type), October 2021 showed the first signs of a turning market. Buyer behaviour had started to shift. There were not quite as many frenzied buyers gripped by FOMO in the market which was starting to affect Auction clearance and results.
In addition to this, chatter had started about a shift in interest rates coming sooner than the RBA had indicated. The RBA had repeatedly noted in their monthly press release that their plan to change the cash rate was likely to late 2023/early 2024. However, other financial analysists were suggesting that rising inflation pressures would see the RBA start rising rates in the second half of 2022, possibly even earlier.
What effect has this had on the market?
What does the future hold?
A shifting market also creates opportunities.
We are seeing more first home buyers enter the market, supported by Government incentives and the changes to Stamp Duty. First home buyers are also appreciating the opportunity, for the first time in two years, to take a bit more time in making a decision to purchase without the FOMO. Investors are also stepping back into the market as they take advantage of the fall in prices and the strength of the rental market. In our opinion it is also a great market within which to upgrade as the price gap between properties is likely to not be as great as in a boom market.
