For the first time in two years we are starting to see many good opportunities as property buyers start to second guess the market following this month’s interest rate hike.
We have noticed that buyers in the high price brackets (over $1.5M) have been more cautious in recent months but now we are also encountering a bit of reticence with those spending under $1M. Agents are telling us that there are less people attending open homes and less buyers registering to bid at auctions, translating into lower clearance rates. As Christmas draws closer, many buyers have decided to put their property purchase on hold until next year and many vendors are getting nervous, wanting a result before the end of the year.
So, for the savvy buyer who knows their market, now could be a great time to buy. Of course, there has to be a suitable property available and a vendor with sensible price expectations… but if you have found one, what are you waiting for?
Some people think that the property market could slow down in 2011 and these are the buyers who are sitting on their hands at the moment. However, we have often seen the market bounce back with vigour in the new year, after buyers have had some time to rest and regain their enthusiasm over the Christmas break. Vendors won’t be feeling the pressure as much then, either, so there may be less bargains around.