REIP – Inside Real Estate September 7, 2022

With winter behind us, REIP Nexus’ exclusive data means we can see how the market has held up over the traditional softer period. 
 
There are some distinctive trends emerging between dwelling types in NSW, Victoria and QLD. A granular look at the data reveals that in suburbs with both house and apartment sales, the median sale price of two-bedroom apartments is now reaching parity with two-bedroom houses. You can read more REIP Nexus insights here: https://reip.com.au/winters-over-how-did-we-fare/

While we are seeing a downturn in the market now, this follows the sharp market upswing we experienced during the height of COVID. Rather than sensationalising what is effectively a market correction, it’s worth keeping in mind that current value declines are unlikely to wipe out all of the gains over the last 2 years. In many cases, mortgage holders will still retain enough equity in their properties to provide a buffer for future market disruption.  

Yesterday, the RBA increased the cash rate by another 50 basis points to 2.35%. Overall we’re seeing an increase in stock, but for now, we are continuing to operate in a buyers’ market and sellers will need to be realistic about sale prices. 

Some positive news is that early reports indicate inflation may be starting to slow, so hopefully, we’ll hit the ceiling of interest rate rises within the next 6-12 months, and we’ll start to see an improvement in consumer sentiment. 

In terms of the rental market, Property Management professionals are being tested like never before, and leaders need to be able to engage and inspire their people in new and creative ways. 

From 16-18 November, the Leading into the New Normal retreat at Red Hill will take a deep dive into what makes a great leader and provide you with the tools required for you to succeed. Join Hayley Mitchell and myself for this 3-day event and walk away with a plan for your own leadership future. Find out more and register here.

Until next time, stay connected.