There’s reduced competition
- Written by Tim McKibbin
We know there is going to be an interest rate rise tomorrow, the only mystery is by how much.
The anxiety we experience each month adds to the broader uncertainty in the market, which serves to erode confidence.
The recent rate increases are having the expected impact. Already there’s evidence of a slowdown in spending.
The subdued environment for real estate transactions will likely continue through to spring, when we expect listings to tick back up again.
It’s no secret that prices are easing, interest rates are on the rise and international events are adversely affecting the cost of living. In these circumstances, it’s not surprising that some buyers have become inactive, preferring to adopt a wait and see approach.
However, for those buyers who remain in the market, there’s reduced competition for the available property which is useful leverage for buyers to draw on at the negotiating table.
Others are taking a calculated risk and choosing to bide their time to see if prices will moderate further. There is no perfect strategy. It depends on the specific circumstances of the buyer and the property they are seeking to acquire.
