We all know what the real estate market has been like over the last 2 years. Every week I go through and do 12 month re-appraisals for past clients on their homes and even though I have been on the front line of price increases and competition, i am still amazed when I am providing a $100,000 - $200,000 increased estimate for the past year.
So, we are coming off a monumental market. But that has peaked, and now we need to navigate a changed environment. Newcastle & Lake Macquarie prices are holding and underlying demand both locally and out of area is still good. But there are some factors that will be out of a buyers control, even if they are still confident about purchasing. Here are 3 of them;
1. Buyers who have pre approval now will be re-rated in 3 months
2. In another 3 months buyers who are ready to buy now, will only be able to spend less depending on how far interest rates have increased. This is even if nothing else changes with their income, assets and expenses
3 And the last hurdle will be a bank valuation. Even if you have an offer accepted within a buyers pre-approved limit, the comparable sales data that a valuer will typically use to support the purchase price, will only go as far back as 3 months. The further away from the peak of the market your sale is, the less chance you can use those to support your value
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