First Home Buyer The end of sharp price rises will be a welcome relief for most first home buyers who tend to not transact as much in fast moving markets. In addition to a slower market, many first home buyers will also benefit from the extended loan guarantee scheme announced in the recent Federal Budget. The third driver of more interest from first home buyers is rising rental levels which could make buying a home a better option. Investors Traditionally, investors pull back as prices cool but we’re not expecting this to be the case in the next few months. Even though interest rates have risen earlier than hoped, access to finance through other restrictions isn’t looking likely to change. The second element to consider is that rents are rising rapidly with plenty of demand from tenants which means finding a tenant is easier for an investor. Sellers When property prices grow at a rapid rate, it can mean buying back into the market can be stressful and difficult. In 2021 we saw some suburbs jump over 15% in three months, so sellers were subsequently priced out of buying back in within a short space of time. A slower moving market takes that element away for the seller [who is about to become a buyer]. And there isn’t a rush to buy a new home immediately upon selling. Long-term holders While the last two years have been great for house flippers, the investors that do well long-term don’t flip. House flipping is lucrative in a rising market but you can get caught out when market conditions change. For longterm holders of property, even buying at the peak of the market rarely creates problems as it’s then possible to ride different cycles over a prolonged period of time. Brigette Righton Elite Real Estate Agent, Ray White Ashgrove The Reserve Bank of Australia increased interest rates for the first time in 11 years on 3rd May. This will hopefully help with stabilising inflation and it’s certainly not all bad news on the property front. In this quarterly update, I share who benefits in a slowing property market, and it’s all about the silver lining. WHAT’S HAPPENING IN OUR MARKET?
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