Selling your home in early 2022 could be the perfect time to maximise the value of your property and take advantage of record-low interest rates, says the Chief Economist at Ray White, Nerida Conisbee.
With demand for property still powering ahead after a stunning 2021, Nerida believes you should act decisively if you’re thinking about going to market this year or upgrading your home.
You’ll not only capitalise on the current record growth in property values – 31% nationally since last March – but benefit from the pent-up desire for homeownership and low rates.
But don’t wait until next spring to sell – traditionally the most popular time to sell. Nerida says this summer and early autumn will see “fewer properties for sale and hence less competition” which usually supports strong prices.
If you make your move soon, you’ll also avoid the emerging uncertainty in the market.
More finance restrictions are expected to follow last October’s move by the Australian Prudential Regulation Authority (APRA) to limit borrowings. Lenders must now ensure clients can afford a loan at 3% higher than the current rate. The previous benchmark was 2.5%.
“With strong price growth comes big increases in home loans,” Nerida says. “So, it was no surprise that APRA stepped in. We’re likely to see further restrictions if they don’t work as hoped.”
With talk of an interest rate rise on the cards, there is now a growing realisation that they will possibly increase more quickly than anticipated once they begin.
“For now,” says Nerida, “confidence in property remains high. We’ve now reopened international borders, which will lead to population growth, further supporting demand. This year will be a growth market, but it will also be a much calmer market.”
The time when you’re thinking about selling is also an excellent time to consider your next loan options. Don’t hesitate to give me a call if you’d like to discuss so you can plan your next steps with confidence.