Let’s explore the current real estate ambiance and what could be the pros and cons of waiting versus selling now and what the real estate market will provide us till the first quarter of 2022.
For sure affordability is a big one. Many buyers have faced this year’s double-digit gains.
It’s expected that the Fear Of Missing Out (FOMO) seen in 2021 will be cooled off by prices reaching unattainable levels.
Let’s address some question which has been unanswered for a while.
What do you think about the current real estate market in Adelaide? and what could be the scope of property market for the year 2020?
I feel that the market is very hot now with some buyers being priced out of the market. Good time to sell and a hard time to buy. I could see trends of property prices increasing in 2022– however, as of today, the 1st of October lenders are increasing their sensitivity rate which for the consumer sees borrowing capacities reduce. Fixed rates have also been increased with some of the major lenders – which could indicate perhaps the property market easing up a bit.
What challenges do buyers face in real estate transactions nowadays?
In today’s market, we are seeing more and more clients wanting pre-approvals. This is due to a lot of properties going to auction now. In a market as hot as it is currently, we can on occasion see an issue with a client purchasing a property over and above the bank’s valuation figure and needing to come up with extra funds at short notice to ensure the purchase goes through, and they don’t lose their deposit!
What could be the possible reason that can hinder the chances of home Loan pre-approval?
Getting the right advice is key to getting approval – Organise a pre-approval, understand fixed and variable interest rates and how they can work to your advantage, deposit requirements, and borrowing capacity. It is important that whoever is assisting with your lending requirements understands your goals to give you the right advice.