The impact of interest rate rises in 2023 has been significant in the Ballarat region with the median value dropping 13.73% in Ballarat central. This has created excellent buying opportunities for those who are able to block out media and social sentiment and focus on their own personal circumstances and financial position.
Currently there are 1106 three bedroom plus houses for sale in the Ballarat region, so investors and homebuyers are spoilt for choice holding the upper hand when it comes to negotiating price and terms. We have seen countless examples of vendors having to drop the original listing price to achieve a sale in recent months.
We expect to see even more properties coming to the market in late January when people return from their holidays and make changes heading into 2024. Most agents we have been dealing with have indicated they have a high number of listings in their pipeline for this period.
We expect the market to remain firm over the coming months and steadily return to an upward trajectory when interest rates start to decline, which is likely to trigger those who have been waiting and sitting on the sidelines to enter the market. We have spoken to dozens of clients who have been waiting to see what happens and preparing to purchase a soon as rates are cut.
With Ballarat central achieving long-term capital growth of 7.25% and a current rental vacancy rate below 1%, we see 2023 as an outlier year and long-term trends to recover moving forward. Those who act on the current excellent buying conditions will reap the benefits over the long term.
Source: CoreLogic, Real estate.com
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