Ray White Cranbourne

While the commentary around price falls is again ramping up, the reality is that at this stage it’s looking unlikely that prices will see a sharp decline in 2022. We’re heading into a period of strong economic growth, rather than a recession, and business and consumer confidence is high. Nevertheless, it’s unlikely that we will continue to see the same rate of growth over the next two years that we have seen over the past two years. Barring an unforeseen event, there are three things that could slow the market. The first is an increase in the number of properties for sale, the second is an interest rate rise and the third are heavy restrictions on finance. The number of properties for sale has picked up over the past few months, primarily because lockdowns have now ended. Already this appears to be slowing the market - days on market have increased and we’ve seen a slight drop in average active bidders at auction. While this will slow down pricing, this will not be a factor driving down prices. An interest rate rise may occur however it’s still too early to tell whether there will be one before the date expected by the RBA of 2024. The key indicator to watch is inflation - this is expected to be higher than usual in coming quarters but this is widely expected to be temporary. If that’s the case, then there won’t be an interest rate rise in 2022. Finally, restrictions to finance have started however at this stage are relatively light touch. It’s likely that further restrictions will be put in place early next year, particularly if investor lending does not slow. Positively, APRA are moving carefully with regards to this. If you are considering a move, we can help you take advantage of the current conditions to achieve the best possible sales outcome. We invite you to get in touch and experience the Ray White difference for yourself. The Sales Team Ray White Cranbourne WHAT’S HAPPENING IN OUR MARKET?