How to navigate the property market downturn - John McGrath

 The warmer months are traditionally the busiest time of the year for the real estate industry. But while Spring is now just a week away, the market correction has turned the usual seasonal rush on its head. In its place, we’re seeing cautious buyers who are unsure how to deal with the new cycle’s ups and downs.

My top piece of advice for both sellers and buyers is to stay calm and not panic. All the negative headlines are making it easy to do this. But any fear this propagates won’t help you sell, purchase, or rent out a property for your ideal price.

It’s true we're currently experiencing a genuine correction. In most markets we operate in on the East Coast, we’ve seen a 10%-15% price decline within four months.

The key drivers of this downturn are the continued high cost of living, unrest in the Middle East and rising interest rates. The changes to the budget have wiped out almost all investor enquiry since the announcement, and this reduction in rental stock will place great pressure on an already hot rental market.

At the same time, the Reserve Bank of Australia (RBA) has left interest rates unchanged at 4.35% for two consecutive meetings. Following this month’s rates announcement, all of the Big 4 Banks predicted that rates have peaked, and will remain untouched until at least May 2027, when we can begin to expect some hikes.