Understanding Market Phases
As you can see by the graphic below, the property market runs in a continuous circle with 4 distinct phases. The market is now at 6 o’clock, the start of the recovery or upturn phase.
Image courtesy of Metropole
There is never a ‘wrong’ time to sell in any of these phases, but it depends on what you are doing and what your goals are. During this part of the phase, it is a great time to do the following things:
Upsize from your existing home. Often in this phase of the market, the price gap between your current (undersized) home and homes the next level up, are at its smallest, for example if you want to move from ½ an acre to small acreage, recently the price difference may have been $400,000, but now it may only be $250,000, making it a much more affordable jump.
Remember, it’s not what your house is worth, but the difference in price that is the key here.
Downsize your mortgage. There are still buyers around, but fewer than in the boom phase. Given the higher interest rates, you may be struggling to repay your mortgage, it’s a great time to sell and reduce debt. Once again, focus on the difference in your price versus what you are buying rather than the actual number your home is ‘worth’.
Get into the market if you’re a first home buyer. With a reduction in actual values of homes and less competition, it’s a great time to ‘get into the market’. With house prices shortly to rise, you’ll look back and think what great timing you had!
Buy an investment property. A great time to get properties that are now showing great value. Rents are up - the return on investment is the best value it has been in a long time.
As you can see, this stage of the market is about ‘opportunity’, there are many options out there. Don’t be scared off by the negative media, think through what could work for you as well as ringing the team at Ranges First National 9754 6111 to discuss your options with our experienced staff. We can help you no matter what your situation.
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