You don’t have to be a real estate expert to know that global interest rate hikes are impacting the overall property market in various ways. While the higher-end tier of the property market remains more insulated from rising costs of living or access to credit, we’re still likely to see some behavioural changes in how buyers purchase their next property. In this short article, we look at some purchasing trends that we’ve spotted in recent months.
As we have written about previously, the luxury and prestige property market follows a different pattern than regular real estate sales. Buyers tend to be more considered, not subject to the same restraints, and many properties are sold before even being listed publicly. Compared to last year, (when the market experience unprecedented activity that culminated in blind buys and over-the-top pre-auction offers), today, this frenzy has calmed. As such, it’s an exciting time to operate in the higher price point realm, as one can make considered purchases without fear of missing out.
With less pressure to make quick purchases, we aren’t seeing the usual influx of prestige homes on the market compared to last year. Vendors may have been spooked by low auction clearance rates and a less-than-impressive start to the spring and summer selling seasons. Some owners are deciding to wait and see rather than take their property to market and achieve a less-than-desired result. At the same time, buyers feel more able to make considered, smart purchases to secure a home that’s not only impressive, but something with potential that they can develop further. In a nutshell, there is less supply and less demand.
Another consideration for prestige homeowners interested in selling their property is where to go once they have sold. With fewer new listings of prestige properties hitting the market, and the rental market experiencing record-low vacancy rates, it is a reasonable concern. This is especially true for families looking to relocate that need to consider schooling and future needs. At times like this, it is vital to engage experienced real estate agents in the know – as they are often across listings that are not yet public. They also enjoy plenty of word-of-mouth intel that could guide you to your dream home.
Ultimately, this new and welcome real estate environment allows for more considered and measured approaches and offers the opportunity for negotiation and longer sale lead times. This, in turn, gives everyone more time to make necessary arrangements under less pressure.
Having the inside track to prestige property can transform your experience. At Mercer & Cooper, we pride ourselves on having a curated portfolio of properties that meet our standards of prestige.
We take a personal and boutique approach to getting to know our clients, understanding their journey and supporting them every step of the way. Whether that means we’re selling one of your homes while looking for your next incredible property, or just giving you the data on what your home could be worth, we look forward to meeting you.
All information contained on this website is for your reference only. You should always make your own enquiries and seek independent legal advice in respect of any information about real estate law and the purchasing of real estate and related subjects. This website may contain hyperlinks to websites operated by parties other than Mercer & Cooper. Such hyperlinks are provided for reference only and Mercer & Cooper does not control such websites and is not responsible for their contents.