Your Market Update – Interest Rates
Interest rates are rising…yes we know, we knew it would happen. However what does it really mean for all of us?
It’s a question we often hear however the reality is that increasing interest rates not only affect real estate, they affect every aspect of our lives whether we know it or not.
For example, have you checked your credit card lately? When interest rates are increased, that often has Banks and credit card lenders increase your monthly interest rate and sometimes it just ‘happens’ without you realising.
The cost of living is affected immediately. The cost of producing goods that we need on a daily basis increases due to supplier increases, transport increases and so on. Why? Because they have to pay the increase in their interest on their commercial borrowings so need to recoup it somehow.
What does it mean for Real Estate? Increased interest rates historically slow down borrowing and this can slow down the marketplace. It can also mean a reduction in the amount of money homes can get at Auction for example. Less Buyers, less competition, less ability to work up a buyer price.
The good news is that in Australia, and in South Australia particularly, the Real Estate market continues to ‘hold strong’. South Australia has become the ‘in demand’ place to live since the Global Pandemic started. We all know, as residents, why that is. After all who wouldn’t want to live in a State that has so much to offer, so much to do, so many places to see…all within a short space of time to get to!
We have loved the ‘best kept secret’ however it’s a secret no more.
The enquiries for property from interstate and overseas, for example, continue to rise.
As specialists in the Western Suburbs, we at Stellar Real Estate are excited for what is happening both now and what we see in the future. Record prices in real estate are still being achieved and even though we have seen a few interest rate rises recently, it hasn’t affected our Buyers at all and Vendors continue to be thrilled with outcomes.
Interest Rate rises are necessary in order to balance inflation, however don’t be too concerned if you are thinking about making the move on your property. You are in the best area of the best state in Australia…people want to live here and they want your home.
Photo Credit – FreeImages
For more information or to discuss how you can benefit from selling with Stellar Real Estate, call John Taylor on 0448 095 241
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