Throughout history, the Australian real estate market has followed a very clear cycle of activity, creating both opportune moments and less favorable periods to sell. As we reflect on the recent real estate boom of 2020-2024, it reminds us that periods of such strong growth are always followed by a period of price correction. One crucial factor triggering these corrections is the rise in interest rates, especially when sustained over time. Although interest rates have been surging since 2022, the true impact of this rapid increase will only become apparent when the cumulative effect takes hold. It is important to recognise that we are now some 12 months into a period of rapidly rising interest rates that will only truly have their full impact in the period of time ahead. It is the accumulative effect of higher interest rates over the longer term that has the greatest downward pressure on real estate prices. 

Looking ahead to the second half of 2024, the pain of higher interest rates is expected to force many homeowners to sell their properties. Furthermore, Receivers and Liquidators have advised that banks are handling a growing volume of properties expected to hit the market as mortgagees in possession. Properties sold under these circumstances always set the pace for property values. Mortgagee companies seek to clear the debt swiftly, selling properties at prices that cover the outstanding loan. Consequently, these sales establish the benchmark for property values during that period.

If you’re considering selling your property in the next 6-12 months, it is highly advisable to avoid this less desirable selling period. Once this phase of price correction passes the market will stabilise, and history shows that we then have a period of relative price stability over a number of years before building momentum for another period of price increases..

By leveraging the collective experience of our people, we can provide you with a significant advantage. Why wait?