Picking the bottom of THE MARKET

While many discretionary buyers and sellers have left the market, life still goes on.

People will get married and divorced, families will keep growing and investors will keep looking for opportunities which means homes need to be bought and sold.

Victoria’s property market is currently experiencing a flat patch but the longterm fundamentals are strong. It’s probably still too early to call the bottom of the market, however, buyers are back because they think the market is going to reset sooner rather than later.

As interest rates peak and inflation eases, housing values are likely to stabilise.

Nevertheless, a rise in housing values would depend on interest rates coming down or other forms of stimulus.

Mortgage rates will be one of the main factors influencing housing market conditions this year and into 2024.

According to the Real Estate Institute of Victoria’s median data for the December quarter 2022, the current median Cobram house price is $420,000 which represents a 5 per cent increase compared to the previous quarter.

The median house price for regional Victoria currently stands at $610,000.

New homes construction continues to be an extremely challenging environment that’s plagued by rising input costs, supply chain delays, labour shortages and a drop in demand. This month, Victorian-based home builder Porter Davis went into liquidation with 1700 homes affected across Victoria and Queensland. With more than 450 employees, the company was predicting revenue of $555 million in the 2023 financial year. If you’re contemplating selling this year, it’s important to understand the current market conditions in your region and what buyers are looking for.

While the market has a significant say on the sale price of your home, it’s not the only factor to consider.

It’s also important to evaluate your own personal situation and reasons for selling.

While buyers are cautious about making purchasing decisions, demand has been buoyed by investor activity as rental yields increase and immigration promises to further tighten rental vacancy rates.

Stock levels also remain low which is helping to safeguard against further price falls.

Finally, it’s worth remembering that if you’re selling and buying in the same market, any potential losses on the selling side are more than likely to be recouped when buying.