The same can not be said about the real estate market as there still seems to be uncertainty about the way that the property market will pan out for both the homeowners and buyers. The property prices are slowly getting back to normal however with the prediction of an increase in the interest rate could make the market volatile again.
The current cash rate is 0.10% which has been foretold to rise drastically. As mentioned in the Sydney Morning Herald, Westpac and ANZ have foretold the cash rate will start rising from September of this year and rise to 2% by the end of the year 2023[SP1] .
According to an article by news.com.au[SP2] , 10% of the houses listed in the market are currently selling for less than their actual worth. The reason behind this discounted price is that the number of properties in the market is more as compared to the buyers. This disproportionate distribution of the buyers and sellers has created this substantial decline in the property price.
Due to the large number of options that the buyers have, they are taking a longer time to consider buying a property as many home buyers have shown fear of overpaying due to the state of the current market. This led to a housing slowdown but a favorable buying condition for the buyers as there is a massive difference between the price that the sellers are expecting and what the buyers are actually comfortable paying. While the homeowners who can still hold on to their property are waiting for the market to get back to normal before listing their properties in the market.
The statistics shared by the REA showed that the 54 suburbs in the Greater Sydney which had a spike in their average price in the past, has now decreased even further than before. With the increase in the cash rate and interest rate, the borrowing power of the buyers has decreased. This in return has forced the homeowners to relist their houses at a less price, with more houses expected to sell at a cheaper price by the end of this year. It is foreseen that the market will slow down even further in the beginning of the next year.