Author: Brian September 23, 2022

Guest Post by Hubert Dwight

Wondering what’s in store for the real estate world for the rest of 2022?

Read on to discover five trends to be aware of over the coming months:

Commercial Is Bouncing Back

As employees return to their offices,  we expect to see a rise in demand for commercial property in Melbourne.

This makes now the right time to buy.

Your investment should be relatively sound, but you’ll be able to get in at a good price thanks to the cooling the commercial market experienced over recent years due to work-from-home orders and changing employee behaviour trends.

The Trend of Leaving the City Is Here to Stay

While buyers aren’t fleeing major cities at the same rate as they were during the peak of the pandemic, the tree change trend is here to stay.

Many people have realised that you can still have access to everything you want while enjoying a laid-back lifestyle in regional areas.

Those who have the flexibility to relocate will continue to do so in droves.

Prices and Timeframes for New Builds Are Rising 

With the cost of materials rising due to shortages and supply chain disruption, prices for new builds are rising, and timeframes for completion are blowing out.

The best way to soften the blow is to work with a builder local to your area.

They are sure to have contacts who can source materials from nearby.

For example, if you’re building on the Peninsula, you’ll want to chat with a builder based in the local area.

While this won’t necessarily keep your costs down, it will mean that you’ll (hopefully) still be able to stick to your schedule.

House Hunting Is Staying Online

The trend toward online shopping received a significant boost during the pandemic and spread its reach further than ever before.

While it has been normal to advertise real estate online for many years, some purchasers are now buying solely based on what they’ve seen online.

If you’re an agent, you must feature your listings on an easy-to-navigate website while also taking advantage of the general real estate websites.

We suggest engaging the services of a top creative design agency if your online presence could use a little help.

It may not seem like a big deal now, but as market forces continue to shift, this competitive edge will be invaluable in the future.

Interest Rates May Tip the Scales to a Buyers Market

If interest rates continue to increase at the current rate, the market could soon be flooded with properties for sale.

This means that supply will most likely outstrip demand, creating market conditions that favour buyers far more than sellers.

Prices shouldn’t fall too far, but if you’ve got a slim profit margin, you’ll definitely feel the pinch.

Sellers may also have to negotiate contracts based on buyer preferences rather than their own, so if you need to offload your property quickly, you may run into issues.

Conditions are shifting rapidly as the Reserve Bank continues to boost interest rates, so if you’re a property owner, this is something to watch closely.

No matter what side of the transaction you’re going to be on, it’s vital to stay across what is happening in the real estate industry if you want to get the best deal possible.

Being aware of these trends will help.

However, we strongly suggest engaging in research relevant to your specific situation before making any decisions.