Forecast For The Remainder of 2023: Shifting Buyer Sentiment and Market Dynamics
In the ever-changing landscape of the real estate market, it is essential to stay informed about the prevailing buyer sentiment and market dynamics. Jacinta Kerrigan, founder of One Agency Kerrigan & Co Realty, delves into the recent shifts in buyer sentiment, the impact of inflation and interest rates, and offers a forecast for the remainder of 2023.
"Recent weeks have witnessed a significant shift in buyer sentiment" she says, "with an influx of positivity and increased foot traffic at open homes".
Ms Kerrigan notes that this surge in interest is an encouraging sign for sellers and investors alike.
Reflecting on a recent experience, she shares the story of a meticulously presented house listed at a competitive price, which attracted an offer during the very first open home. "This suggests a growing confidence among buyers and hints at a potentially favorable environment in the market." she commented.
However, the real estate market has not been immune to the effects of inflation and interest rates. Highlighting the substantial decline in sale prices and the lengthier time properties spend on the market.
"Once highly sought-after properties that could have commanded a price of $1.7 million in the peak of the market within a matter of weeks, are now being sold for approximately $1.25 million."
This deflationary trend has made buyers more cautious, resulting in hesitance to participate in auctions or engage in multiple offer situations.
Looking ahead, Ms Kerrigan offers a forecast for the remainder of 2023.
"While there may not be a significant increase in prices, she anticipates a surge in buyer and developer activity. Properties are expected to sell at a faster pace, and listing numbers are projected to rise." she added.
Sellers are becoming more attuned to the evolving market dynamics, understanding the adjustments in property values. Also predicting a busy post-election period as buyers seek clarity on housing policies, fostering an environment of increased activity and engagement.
Analyzing the demographics of buyers, Ms Kerrigan reveals that the recent relaxation of Loan-to-Value Ratio (LVR) restrictions has led to an influx of inquiries from developers and flippers.
However, the majority of buyers in the current market comprise first home buyers and homeowners looking to upsize or downsize. This diverse range of buyers underscores the accessibility and broad appeal of the properties available.
Amidst these changing market conditions, Ms Kerrigan emphasizes the importance of embracing positive transactions and ushering in a new chapter in real estate.
As sellers and buyers adapt to the evolving landscape, a sense of optimism prevails, paving the way for a future of growth and opportunity.