Let's talk interest rates

I’ve been asked about how the interest rate increase(s) will affect the current market about 300 times since the announcement, so I thought I would make a post. It’s important to look at these points in the context of the crazy growth we have had over the past 2 years.

- The ‘panic tax’ of buyers doing anything to secure a property and getting 10 quality offers in one inspection may be behind us.
- Buyers are looking to buy and lock in a mortgage rate before further rate rises and will pay fair current value – but are not overpaying.
- Stabilization of prices should level out this growth and lock in the value for homeowners.
- Easier ‘trade-in market’ – that is people selling to buy and upgrading / downsizing. Predictability will return as stock levels and time on market increase.
- Real estate agents will have to show better negotiation and marketing skills, and stop treating buyers poorly.
- This was not unexpected. Many buyers are happier to see more stability and less frenzy around new listings and inspections.
- Regardless of the interest rate, people need a place to live, and Australians are still property obsessed.
- Brisbane is the best performing capital city in the country.
- The rates have been very low to see us through uncertain times in the economy and that has done its job. I have seen many people overspend simply because the repayments are low.
- Cost of living pressures will continue in the wider economy and it is hard to say how that will extend to property.
- In the longer term money in the bank will generate a higher return. A lot of people were spending haphazardly due to there being no gain to holding cash.
- Two to three rises are expected before the end of this year.

Send me a message if you would like to know how these points apply to your specific situation.

I specialise in Brisbane real estate and would love to discuss how this affects you.