The Turning of the Interest Rate tide, and why it matters for buyers
Our articles have had their very own Glow Up - check out our fancy new ways of bringing you our insights and buyer tips… welcome to our video series!
Has the tide just turned? Today, the RBA have dropped Interest rates—so what does that actually mean for buyers in Canberra? Well, two things: more competition and, surprisingly, more choice is on the way. Let’s break it down.
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There is one topic everyone is focused on today, and that is the release of tickets for the AFL season, right? Well, maybe the RBA's interest rate cut too, but hey, I'm still hoping to get tickets to the G, and it is proving harder than the Taylor Swift concert right now. So while I wait, I thought I'd share my thoughts on the impact that this much anticipated cut from the RBA will have for buyers here in Canberra.
Lower interest rates. mean better loan serviceability, which generally speaking means more buyers can afford to borrow more. And what happens when more buyers enter the market? Competition heats up, especially for quality homes in good locations. As more buyers become active in the market, they're wanting the best properties for their budget and needs.
It's not like shares where every share transacted is identical. For great value homes, there's multiple buyers eager to compete for it. In recent weeks, we've already seen confidence picking up in the Canberra real estate market, and that trend is highly likely to continue into the autumn months.
But here's the upside.
When buyers become more active, sellers and their sales agents take notice. If a seller has been holding off listing their property for sale, perhaps waiting patiently for the right time, after a slow year last year, well, this could be the trigger. More demand tends to elicit more supply. Perhaps not right away, but once that trend emerges, any competition driven price increases follow suit, and it brings out the better quality homes that have been waiting in the wings.
So while competition looks to be increasing, so too will supply, perhaps not right away, but in the weeks to come. And that's good news if you've been struggling to find the right place.
So what's a buyer to do?
The saying goes, luck is where preparation meets opportunity. If you're a buyer, be ready, have your finances sorted, know what you're looking for and be prepared to act fast.
If you need help navigating this changing market, well, I can say right now we are opening the doors soon for our home buyer course, My Own Home. I will pop the link below for our waitlist because it only opens for a few days and then I get going on the inside. I would love to help you if this is the year for you to buy a home.
So go polish that pre approval and it's time to get ready for the opportunities coming up.
Happy house hunting!