Put simply, YES, if you want to.
For homeowners eyeing the ever-shifting landscape of the Australian housing market, understanding the pulse of the Reserve Bank’s interest rate reviews is crucial, as is understanding the movements in the market.
What is most important though, in knowing whether 2024 is a good time to sell or buy a house in Melbourne, is knowing your situation, goals and requirements.
Let’s cover the basics: What do we know so far about whether it’s a good time to sell or buy a house in Melbourne?
1. The RBA and Interest Rates
The Reserve Bank of Australia (RBA) has just had its first meeting of 2024, holding interest rates steady. The new RBA rhythm has commenced, where interest rates are reviewed every six weeks instead of the traditional monthly assessments.
While it will take some time to see if and how this new 6-weekly rhythm impacts the housing ecosystem, many experts and banks are predicting that interest rates will remain steady in 2024. Well, it’s more steady than the previous two years! With many predicting 2-3 rate changes only.
However, it’s essential to note that the RBA’s decisions are multifaceted, influenced by a myriad of economic factors beyond just housing market considerations. Global economic trends, inflation rates, employment figures, and geopolitical events all play pivotal roles in shaping these decisions.
Therefore, while the RBA’s actions can influence the housing market, they are not the sole determinants of its fluctuations, and buyers and sellers alike should look at a broader range of indicators.
2. Auctions have started the year on a high – indicating that 2024 could be a good time to sell a property.
Roy Morgan’s research shows 1.527 million mortgage holders were at risk of mortgage stress in the three months to December 2023. This trend may continue into 2024, even if the interest rates remain steady. This could result in more properties being listed on the market.
We’ve certainly seen a positive start to 2024. It was a busy Melbourne market for the first major Auction weekend of 2024 (Saturday 4th Feb). and Melbourne’s Auction results paint a good picture for buyers and sellers alike.
Over 600 homes were slated to go under the hammer, which was more than triple the previous week, and almost double the number of auctions held in January. Interestingly, it was also 47% higher than the same time last year. This tells us that there’s some good stock on the market.
Of the 603 properties on the market in Melbourne, 351 properties sold which is a 72% clearance rate. This also tells us that there are plenty of interested buyers out there.
The following weekend 11 August saw similar results with 618 properties on the market and a 73% clearance rate.
Now, let’s cover what’s really important: your lifestyle, finances and requirements
This is the key to really understanding whether 2024 is a good time to sell or buy a house in Melbourne for you.
It doesn’t matter what everyone else is doing. What is important and what we recommend to all sellers and buyers is that while you need to understand the market, what is most important is understanding your personal lifestyle, finances and future needs.
Let’s take a look at these factors.
1. Lifestyle.
Consider your lifestyle and;
A. for sellers, what sort of sale price you require to set up yourself in your next property,
B. for buyers, how your lifestyle may change over time so you can determine how the property will fit the lifestyle you want.
2. Finances.
Both sellers and buyers should talk with a financial adviser and truly understand not only their financial commitments right now but also plan scenarios for the coming 5 years so that they are prepared for any changes in interest rates.
3. Future requirements.
Think about what you need now, and in the future. More room, less room, a yard for a dog. When is the right time to either sell or buy for the changes that will happen at your stage of life? Plan for these.
In conclusion, buyers and sellers alike should stay informed, stay adaptable, and leverage available resources to navigate the evolving housing market successfully. Our advice is to keep your lifestyle and financial requirements at the forefront of your decision-making – with this in mind, you’ll know when it is the right time to buy or sell a property.
The team at Atria keep abreast of Melbourne’s property market trends, including the potential impact of interest rate changes on both the buyer’s and seller’s mindset. Talk to us to see what’s happening in your area, we are happy to share our knowledge. Contact us on 03 8680 9421 or email us today.
