Homeowners’ strong position will help in softer conditions – John McGrath

When you’ve been in real estate for as long as I have, the latest Cotality data isn’t surprising. After all, property is a long-term game where the market is subject to several cycles along the way.

That being said, I empathise with property owners’ uneasy time right now. Not only has the Reserve Bank of Australia (RBA) increased interest rates three times this year, but high petrol prices due to the ongoing Middle East conflict are exacerbating cost-of-living pressures.

Does this mean potential buyers shouldn’t purchase a home or owners should sell their property? Not at all.

But I would encourage these people to study the long-term effects of pressures and downturns on the property market over several decades, not just a few years.

Doing this will definitely help both possible buyers and current owners remain calm and not be deterred.

In a similar way, Cotality research director, Tim Lawless, recently explained how these two groups are facing both bad and good news at the moment.