Top 3 questions I get asked on a weekly basis answered:
1 - Has the sales market pulled back
2 - Should I increase my rent
3 - Will interest rates continue to rise
I've ran a residential real estate business for over five years these are the conversations that i'm having with my clients i'll share them with you I
really hope you get something out of it.
1. Has the sales market pulled back? what's going on? Is the market going to crash by 30%, is it all doom and gloom?
Keeping in mind this is just my point of view and yes the market has pulled back, what we've seen is clearance rates according to domain this week were sitting at 55 percent, this time last year they were at 76
percent, also for the month of june we've had over 30% of auctions that were scheduled get taken off the market.
What i think that was in response to was the interest rate rise
in addition to a couple of other economic factors but what we are seeing as a result of that is that whilst the market certainly wasn't what it was late last year early this year the amount of stock that's been pulled in comparison to the buyers that have stopped looking there's a little bit of
a mismatch so what we are finding is properties that are aligned with market value are getting a fair bit of activity just on the basis that the people that need to buy don't have a lot to choose from.
I don't think the market is going to drop by 20 by the end of the year i really can't see any it happening and i dont think the banks would let it happen.
2. Should I be putting my rent up?
The answer is yes!
Yes you certainly should be putting your rent up when you are looking to do a lease renewal.
Migration rejuvenated the city in my opinion and we are starting to see a lot more activity from a rental point of view.
You should be getting a rent review done on your property and best way to do that is just to look at what comparable properties are currently leasing out for to get an indication of the market value.
Ask your property manager if you do have a rental to do that for you and they'll be able to produce a report otherwise a little plug give us a call we'd love to help!
Rental providers like everyone did their part during Covid, now it's really time to realize the market value and obviously the cost of things have gone up as well.
3. Will interest rates continue to go up?
Whilst I'm not an economist I'm just a real estate agent I do believe that there will be a few more rate rises toward the end of the year they're going to want to try and stem inflation.
I don't think they will make dramatic increases there will be a few more increases.
