Halloween's just around the corner, which means the kids will soon be wandering the neighbourhood dressed as ghosts, witches and whatever else they can convince their parents to buy. They'll be knocking on doors, trying to scare the neighbours and hoping someone hands over a few chocolates. Although, looking at the price of chocolate these days, the real fright might be at the checkout.
The Reserve Bank apparently decided Halloween should come early this year, delivering homeowners a little scare of their own. Over the last month, they've increased the cash rate by another 0.25%, bringing it to 4.60%. Their reasoning? Among other things, the conflict in the Middle East is pushing up energy prices, and apparently the global demand for AI is driving up technology prices too. So, between what's happening overseas and everyone asking ChatGPT what to cook for dinner, we're not having much luck with interest rates.
And while the Reserve Bank is busy trying to get inflation under control, the property market has been doing a little adjusting of its own. According to Cotality's latest housing report, Brisbane has 60% more properties advertised than this time last year, and the median time to sell has gone from 17 days to 38.
That's three extra weeks of waiting for someone to fall in love with your house. On the bright side, Halloween might bring a few extra people through the front gate. Just remember to have some chocolates ready for the visitors!
Now, those are Brisbane-wide figures, and every local market is a little different. But they do help explain something we're seeing closer to home. Buyers have more choice, they're taking their time, and they're not necessarily rushing to make an offer just because a property has come onto the market. Which sounds a little frustrating if you're selling, but there's another side to that story.
If you're selling one property to buy another, you're effectively trading in the same market. When prices are rising, you might get a fantastic result for your current home, but chances are you'll also be paying a premium for the next one. When prices soften, you might not get quite what you were hoping for when you sell, but you could also find yourself getting a good deal on the property you're buying.
Sometimes the most important number isn't your sale price. It's the difference between what you sell for and what you buy for. Of course, every situation is different, particularly if you're upsizing, downsizing or moving between different areas. But trying to pick the perfect time to buy or sell isn't easy, and a changing market doesn't automatically mean it's a bad time to make a move.
It's almost impossible to know exactly when the market has reached its peak or hit the bottom. If I could predict that, I'd have a crystal ball sitting on my desk. Although, with Halloween coming up, I might finally be able to find one.
What we can control, however, is how we approach selling. And you'll probably hear me bang on about the same three things I've always said matter most: Presentation, Price and Promotion. Get that right, and you're giving yourself the best chance of achieving a strong result, whether the market's going up, down or sideways.
If you'd like to chat more about the current market, your property or what Halloween costume to wear, we're always happy to pop around for a coffee and a chat. And don't worry, we promise not to judge your Halloween decorations. Unless they're really scary.
Now, here's where the current market gets interesting, particularly if you're looking to buy. With more properties available and buyers taking a little longer to make decisions, there's potentially more opportunity to negotiate, compare your options and find something that really suits you.
Think back to when properties were selling after the first open home, sometimes with multiple offers on the table. Buyers were making decisions quickly, often worried that if they took too long to think about it, someone else would beat them to it. Not exactly ideal when you're making one of the biggest financial decisions of your life.
A quieter market can give buyers something they haven't had much of recently… time!
Time to inspect a property properly, ask questions, do your homework and potentially negotiate terms. It doesn't mean every seller is suddenly going to accept a lower offer, but having more choice and less competition certainly changes the conversation.
And that doesn't just apply to people selling and buying. If you're a first-home buyer, an investor or simply looking for your next property, the coming months could present opportunities worth keeping an eye on. Sometimes a good buying opportunity isn't about finding the cheapest property. It's about finding the right one without having to rush.
There's an old saying from billionaire investor Warren Buffett: "Be fearful when others are greedy and greedy when others are fearful." He was talking about the share market, but there's a lesson there for property buyers too. When everyone else is rushing to buy, it can be difficult to find a good opportunity. When buyers are sitting on the sidelines, sometimes it's worth taking a closer look at what they're overlooking.
So, where does that leave us? Well, the market is changing, and while that might create a few challenges for some, it can also open doors for others. Whether you're buying, selling or just keeping an eye on things, there's no need to rush into a decision or put your plans on hold simply because the headlines are doing their best impression of a Halloween horror movie.
Until next month, thanks for reading!
P.S. I asked ChatGPT for a cheap Halloween costume idea. It suggested dressing as an interest rate. Apparently, that scares most adults. (Sorry for contributing to inflation.)