FOMO is an attributing factor drawing buyers into the market right now. Quite literally, the 'Fear of Missing Out' means buyer motivation to secure their next home is high and here are some of the reasons why...
Availability of Homes for Sale
We are still seeing low levels of quality housing stock 'For Sale' which means more competition and interest in the homes that are available. Buyers understand that they really must be putting their best and most prepared 'foot' forward to secure a property. It is also even more important that sellers choose an agent who can properly qualify buyer interest to prevent time wasting and price-point disappointment. Our team are happy to explain this process to you in more detail.
House Prices
Statistics show that Brisbane have seen a 45% price increase for both houses and units since pre-pandemic levels in early 2020. Despite house prices dipping significantly towards the end of last year because of inflation and interest rate rises Brisbane house prices have now risen for the past five consecutive months. Although it is anticipated that this trajectory will level out, population growth for the Sunshine State sits at record levels. Contributing to this is overseas, interstate and student migration, combined with affordability of Brisbane housing stock (compared to Sydney or Melbourne) and our enviable climate all of which continue to make ours the 'move to' state. The effect this has on buyers is that they understand the consequences of delaying the purchase of a home. Buyers can see if they don't act now, they may be outpriced or outnumbered in the market.
Inflation
We have all felt the effects of inflation which has driven up interest rates with 11 rate rises in the past twelve months. Whilst in a normal economic cycle, increasing costs and prices would cut people's spending habits, many homeowners have built 'nest eggs' and savings in the past few years because of not being able to spend anything due to the Covid pandemic. The effect is that most, even those coming off fixed rate mortgages, can weather the storm for now.
Managing the economy is a complex task however if our discretionary spending can be managed, and inflation lowered as a result, then there is potential for a much hoped for 'halt' in interest rates on the horizon in the coming months. If it comes this will allow people to draw breath and properly assess affordability and their borrowing capacity which finance brokers expect will see an increase in pre-approvals for potential buyers.
So, FOMO has created an almost 'now or never' mentality meaning we are seeing increasing levels of buyer interest. Our recent sales support this and also mean we have numerous unmatched buyers keen to purchase a home. This is great news for anyone thinking of selling right now - contact our team for a no pressure discussion. We would love to talk to you and are always happy to help!
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