Ninja In A Blazer - October 2024

I hope you’ve been well since our last Ninja in a Blazer monthly letter. As we approach Christmas (it’s hard to believe the year has flown by!), I wanted to take this opportunity to update you on the current property market and provide some advice if you’re considering investing, upgrading, selling, or any other property dealings.

State of the Current Market

As mentioned in our previous update, the property market has continued to grow. Over the past 12+ months, property values have increased each month at a record pace, despite the higher interest rates compared to a few years ago. However, in the last two months, we’ve noticed a clear shift in the local market. Tracking inquiries, offers, and the average number of attendees at open homes, we see a reduction in activity. Buyers seem less affected by the fear of missing out. This does not indicate a “bad” market; rather, we are likely at the peak of the market. Despite lower activity levels, we are still achieving record prices.

The graph on the right illustrates the market cycle, showing that we are positioned between a Boom and a Slow Down, and it remains a sellers’ market.

Who Will Benefit in This Market?

• Upsizing or Downsizing: If you’re looking to upsize or downsize but need to sell your current home first, this could be an opportune time. Over the past 12-18 months, it has been challenging to arrange subject-to-sale agreements due to strong buyer competition. However, we are now seeing some sellers willing to accept subject-to-sale offers if they are the highest and their property is ready for market.
• Profit Taking: If you’ve been considering selling your investment or home to realize profit or equity, this may be the moment you’ve been waiting for, as the market is peaking and could soon adjust to more normal conditions.

Timing Considerations

If you’re considering selling as we approach the Christmas holidays, please think about your timing. Are you ready to go on the market this year or next? If you plan to sell this year, we recommend listing by the end of November. While we can launch properties up to mid-December, an earlier listing provides more breathing room if things take longer. If you’re looking to sell next year, consider getting your home ready and taking photos before the Christmas break, aiming for a launch in the second week of January.

Interest Rates Outlook

According to a recent article, the big four banks predict rate rises as early as December through May, with all anticipating 3-5 rate cuts of 0.25% by the end of 2025. While forecasts can be uncertain, we believe any rate cuts will positively influence the market and boost buyer confidence.

Wishing you a wonderful rest of the year! We look forward to reconnecting before the end of 2024. In the meantime, if you have any questions or would like advice on anything related to real estate or property, please reach out.