If you’re in the market for a new home, there’s no question that this will be on your mind.

Is now the best time to purchase property?

Well, we can give you a pretty simple answer, and unfortunately, it’s one you probably won’t like.…

It depends. 

Plainly, if you’re looking to flip a house and make a million in 6 months, or you’re looking to purchase something out of your budget, the answer would likely be a no. 

But, on the other hand, if you’re in a stable, budget-backed position and you have a plan in place for long-term financial growth, there’s no secret that the property market is providing some amazing opportunities for savvy buyers. 

That may sound obvious, but it’s the uncertainty that is scaring many Australians away from purchasing property. 

This is because it’s easy to have a wait and see approach, letting time pass by to allow the market to do what it needs to do, waiting for the ‘perfect’ time to jump in and purchase a home. Unfortunately, as much as we all want to be idealists, there’s never going to be an absolute BEST time to buy a house. Generally, time in the market will beat trying to timing the market.

The beauty of property is the cyclical nature in which it ebbs and flows. Following changes in the economy, we’re currently in the midst of a slight market downturn, as interest rates hikes and inflation impact our ability to spend. 

Over the past 6 months, we’ve seen the RBA attempt to quell inflation by increasing cash rates back to pre-pandemic levels. By doing so, it has forced banks to increase their interest rates, naturally making it more expensive to borrow money. With this has come an hesitancy in the general population to spend, contributing to a downturn in the surging property market, leading people to question whether now is a good time to buy. This simple questioning has led to Australia’s median property price dropping by 2.2% compared to this time last year. As you look location by location, it can be seen that high-quality areas, including parts of Sydney and Melbourne, have fallen as much as 12%. So, if nothing else, it means that quality opportunities to purchase are aplenty.

If not now, when?

The Law of Diminishing Intent, coined by famous American author and entrepreneur Jim Rohn, suggests ‘the longer you wait to do something… the greater the odds that you’ll never actually do it’. When it comes to property purchasing, this idea can launch us into continual bouts of doubt, followed by FOMO (fear of missing out). When combined, they create a feeling of diminishing intent, that restricts us from taking steps to better ourselves, whether it be financial, or in any other facet of life.

With a penchant for long-term growth, Australia’s current property market trends aren’t the be all and end all. Ultimately, as the economy continues to stabilize post-pandemic, through the mitigation of inflation and the slowing of interest rate increases, many property experts are confident that the upturn is up ahead.  

So, as they say, the best time to purchase property was yesterday – and the second best time is TODAY. 

Looking to jump into the property market? Want to know more about how the Rostron team can help? 

Give Rostron Mortgages a call on 1300 70 70 39  – we’d love to chat!