There are two numbers that every owner, buyer and seller is keeping a keen eye on these days: the inflation rate and rising mortgage costs.
As many of us are acutely aware, the Reserve Bank of Australia has increased interest rates 10 times in the past 12 months to fight post-pandemic inflation.
Now, we may have caught a break that will boost everyone who has a mortgage or is seeking to buy their first property.
Inflation has shown the first signs of retreat, falling to 6.8% in February from 7.4% in January. That’s still a long way from the RBA’s 2% to 3% target, but it’s a start.
One of the biggest contributors to inflation is the 13% hike in the cost of new housing compared with February 2022. This illustrates the continued labour cost and supply stresses in the building sector.
With CoreLogic reporting auction clearance rates remaining over 70% nationally, cautious optimism is beginning to return to the property market.
More positive trends continue in the job figures, a critical economic number influencing confidence.
The Australian Bureau of Statistics (ABS) says we have 439,000 job vacancies, which is nearly double the number three years ago.
While the vacancy trend is tapering down, the ABS confirms there is “still a very high demand for labour from employers across Australia and across all industries”.
Whether the RBA pauses its rate-rise strategy remains to be seen, but there’s speculation it will adopt a “wait and see” approach now inflation is declining.
These latest economic figures may trigger plans for owners who want to upgrade or downsize their property.
If you’re considering a move, you may want to check this list of quick tips for selecting a real estate agent, which is the first step most owners take when preparing to sell.
Seek experience
You want to work with an agent who has enjoyed success selling properties similar to yours. If they’re specialists in marketing two-bedroom apartments, they might not be the best fit for your multi-million-dollar mansion. Interview a minimum of three agents.
Reap recommendations
Reputation is everything in the real estate business. So, ask family and friends for recommendations of agents they’ve used in the past three years. You can also seek out online reviews of agents.
Their plan
Push each agent you interview on how they intend to sell the property. Their marketing strategy is critical to achieving the best possible price. The price range they quote is essential to this process, but don’t choose the agent who makes the largest promise.
Communication
Many owners wisely choose their agents because they trust them to be honest and accessible, and they’ll handle all their concerns. Many say this has the biggest influence on their decision.
Fees
Ask candidates to explain their commission rates, marketing costs and any other fees associated with your sale.