- Dragan Dimovski expects interest rates to stabilise early next year, or even decrease
- This will result in renewed confidence from buyers, he said
- Discounts of 10 to 15% are currently being witnessed across the housing market
A window of opportunity for buyers to purchase a discounted property could end by as early as next year, according to Dragan Dimovski, Buyers Agency Australia Founder.
Mr Dimovski makes the call given interest rates are expected to stabilise or even fall around February. At this time, he expects confidence to return with more buyers becoming active. This could see prices rise again.
“That means there could be less than six months for buyers to take advantage of the current buyers’ market, where discounts of 10 to 15% can be found with reduced buyer competition,” he said.
“People will become accustomed to the new interest rate levels once they stabilise, just as we were comfortable borrowing and buying when the cash rate was over seven per cent back in 2008.
“The cash rate unlikely to reach even half that level this time around, despite recent hikes.”
Mr Dimovski noted that he had clients who have recently purchased houses 10 to 15% lower than the market value just a few months ago.
“These discounts are being found all over Australia, but some recent examples were homes I purchased for clients in Newcastle and just outside Brisbane,” he said.
“As we enter the spring selling season, which is traditionally busier, we will likely see a rise in listings coming to the market which will see those discounts continue.
“Buyers also currently have more time to consider their purchases, rather than feeling like they have to rush in.
“But the great buying opportunities we’re seeing now will be limited once interest rates stabilise next year, hence I’m advising my clients to buy before the end of 2022 if they can.”
Dragan Dimovski, Buyers Agency Australia Founder
Along with increased domestic demand, he expects the influx of migrants would also drive property prices.
“Smart investors never stopped buying during this quieter period in the market, as they know it’s best to act when others are on the sideline, but we will see more homebuyers return to the market in 2022,” he said.
“This, along with migration, will significantly boost demand, but we still have a fundamental housing undersupply issue that is not being addressed. This will only serve to underpin housing prices moving forward. When prices do start to rise again I don’t think it will be at the levels we saw during the boom.
“Growth will more slow and steady, and while it will vary depending on where you’re looking at around Australia, it will be back to less than 10 per cent per year.”
Growth to stem from affordable end of market
Mr Dimovski added that price growth is likely to be led by the more affordable end of the market.
“However, careful selection of property is always important, and if you buy in the right property in the right area the value will rise when the market rises,” he said.
He also noted investors should be paying attention towards rising rents.
“As demand for housing increases rents will also continue to increase,” he said.
“Migration will particularly impact upon this as the people coming to our country will need somewhere to live, and often they find somewhere temporary to begin with.”
