Is right now the ‘best buying in a decade’?

According to buyer advocates, it’s the perfect time for buyers “to make a cheeky offer”.

In the wake of the latest Reserve Bank of Australia (RBA) rate rise, the Real Estate Buyers Agents Association (REBAA) said that while some people will be sitting on the fence “and feeling despondent”, buyer’s agents plan to make the most of the consumer confidence downturn.

With the cash rate now at 3.35 per cent, REBAA president Cate Bakos acknowledged that many buyers have been expecting further rate increases and have therefore factored it into their purchasing strategies — many of them now with mortgage pre-approvals in place.

“I don’t think this announcement will send shock waves to anyone who has been following the property market for the past year,” she acknowledged.

According to the president, many buyers have been “waiting in the wings” for the latest rate rise, anticipating that savvy investors will use the negative consumer sentiment to their advantage.

“With no cash rate moves due to January being an RBA meeting block out, there are some buyers who have used the time to get themselves ready with mortgage pre-approvals in place.”

“Certain lenders are offering a three-month validity period regardless of rate movements and a lot of consumers who are subjected to borrowing capacity constraints are going down that path.”

It’s why, immediately following the cash rate announcement, the REBAA predicted “the next fortnight to be the best time in a decade to make a cheeky offer.”

Looking further ahead, Ms Bakos is optimistic about property’s prospects, expressing that the REBAA “continue[s] to maintain that the second half of 2023 will see increased buyer energy.”

“Those buyers who are waiting for the market to bottom will see that the cash rate reaches equilibrium and some level of certainty returns in respect of the RBA,” she concluded.

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