It’s A Buyers’ Market So Take The Advantage! Here’s 9 Reasons Why…

1. Falling House Prices and Affordability:

Property prices have been decreasing over the past several months, making homes more affordable for potential buyers.
The drop in prices has improved affordability, especially compared to the rapid price escalation during the previous boom.
The perspective is that rising incomes coupled with price declines have made properties more economical.

2. Advantages for First-Time Homebuyers:

Lower prices make it more feasible for first-time buyers to enter the market.
While mortgage rates might be higher, the overall mortgage amount is smaller due to reduced property prices, resulting in significant initial savings.
Increased affordability widens the selection of properties for first-time buyers, including standalone houses.

3. Implications for Existing Homeowners:

Existing homeowners selling at a lower rate might experience a decrease in sale proceeds.
Buying within the same market, the lower purchase price offsets the lower sale price.

4. Stabilization of Prices and Historical Trends:

Potential buyers are concerned about prices continuing to fall.
The perspective suggests that negative equity is manageable if homeowners can afford their repayments and don’t plan to sell.
Historical trends of consistent property value increases over extended ownership periods.

5. Increased Inventory Benefits Buyers:

The shift from a seller’s to a buyer’s market has led to a significant increase in available housing stock.
Buyers have more choices and reduced pressure to rush decisions due to the abundance of options.

6. Interest Rates and Fluctuations:

Rising interest rates could discourage potential buyers, but fixed rates might be stabilizing.
The perspective suggests that recent decreases in US inflation offer hope for stable interest rates.
Long-term perspective and seeking financial advice are advised to navigate rate fluctuations.

7. Timing the Market:

Experts caution against trying to time the market perfectly.
Instead, they recommend potential buyers to act if they are financially ready, find a suitable property, and can manage the commitment, as waiting might lead to missed opportunities.

In Conclusion:

The overall message is that despite concerns about falling prices and rising interest rates, the current housing market presents potential advantages for homebuyers.
Lower prices, increased choices, potential long-term gains, and historical market trends suggest that now could be a favourable time to make a purchase.

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Martin Eagle

Mortgage Adviser at Mortgage Group

Meet Martin Eagle: Christchurch's licensed broker, backed by 25 years of property expertise. With a network of lenders, he turns dreams into reality—specializing in first-time buyers, Kiwisaver, and more. Efficiency is paramount. If others say no, Martin finds a way to say yes. Your dream property awaits—connect with Martin now.