The return to normal programming can ultimately deliver comfort to buyers and vendors
- Written by NewsServices.com
Commonwealth Bank said last week that the peak impact of interest rate rises will be experienced by consumers in December, based on the projection of another couple of rises and the lag in time it takes for the adjustments to have an effect.
Should this play out, it will do so following what is traditionally the peak transaction period ending in November.
Spring will be an important barometer of things to come. The rate rises we’ve seen to date will have been factored into purchasing decisions. An increase in the number of new listings, we expect, will come to market.
Indeed, in the past week, the number of auctions in Sydney was up significantly over the week prior as well as for the corresponding week last year.
Forecasting can be foolhardy but it’s reasonable to believe that relatively flat prices will continue to characterise the broader market for the remainder of the year.
The return to normal programming can ultimately deliver comfort to buyers and vendors.
Stable prices mean everyone knows where they stand, and agents can more effectively manage vendor expectations.
At this point in time, aligning price expectations with the new reality remains a challenge for agents.
