After two years of the greatest property boom the country has experienced, the market was always set to move into the next phase of a typical real estate cycle.
The real estate market travels generally through an 8-10 year cycle, in which generally you see 2-2.5 years of strong price growth, followed by a 2 year period of price correction or decline in property values, and subsequently, a 3-5 year period of a relative flatline market where prices largely do little growth or any decline before starting the cycle again.
History will now show that the summer of 2022 was the high-water mark in the price rise cycle, and we are now transitioning through into the price correction phase. Barring an X-factor that could cause a significant correction, the correction will largely be caused by rising interest rates.
Interest rate rises are a break on the real estate market and cause financial pressure which generally brings more motivated sellers. These sellers generally set new market pricing because of their willingness to accept low offers in order to sell properties as quickly as possible. Rising interest rates also moderate the prices that buyers are prepared to offer, and do cause some buyers to drop out of the market altogether.
With all this in mind, any prospective seller must become extremely conscious of this cycle and take advantage of any opportunities to capitalise on the market ahead of the price corrections.
We know markets are always affected by federal elections, but there is a window of opportunity immediately after an election to market properties before significant interest rate rises start to work their way into the real estate market.
As such, we have scheduled our Mid-Year Selection with some of the best properties available. These will be presented to the market not only locally, but internationally with the use of our vast resources as Australasia’s largest real estate company. We will tap into the continued interest from buyers interstate who wish to secure properties here on the Gold Coast.
Marketing will occur immediately after the election and run through to auction day on the 30th of June. For any prospective seller, common sense would say to sell sooner rather than later; so it is with this in mind that I strongly recommend you be part of the Mid-Year Selection of 2022.
We’d be delighted to provide you with any other information you may need. But rest assured, with over 45 years of experience through 7 real estate cycles, nobody on the Gold Coast knows how to get better results in this new phase of the market than the Ray White Surfers Paradise Group.
For more information please don’t hesitate to contact The Mid-Year Selection hotline on 1800 198 009 or fill out the contact form below.
We look forward to assisting you in taking advantage of today’s market.