Real estate sales sluggish due to rising interest rates

“Many buyers are being forced to reassess their ability to borrow and reassess their buying decisions in light of rising interest rates. We are facing an increase in mortgage payments,” he said.

“This will lead to a market downturn in the coming months, with many potential buyers deciding to sit on the sidelines as a result of the uncertain climate.”

The slump in sales has yet to reach median land prices. Some predict that prices will also fall, which he did during the quarter, up 3.6% to a record high of $379,000.

Satterley said: This is an adjustment caused by rapidly rising inflation. This increases the volatility of real estate trust stock prices. Clearly, the outlook for housing is worse than it was six months ago. ”

Shares of residential community developers such as ASX-listed Peet and Cedar Woods hit new lows in June, but have risen slightly since then.

Cameron Leggatt, executive general manager of development at Singapore-based Frasers Property, said the market was definitely down.

After a busy period due to COVID-19, the situation was “more stable” with unusually strong sales and price increases.

“Many buyers are being forced to reassess their ability to borrow and reassess their buying decisions in light of rising interest rates.”

Luke Kelly, Managing Director of Project Marketing, RPM

“Inquiries are down by 30 to 40 percent. Land sales are down by a similar amount,” he said, adding that large Victorian estates like The Grove in Ternate and Berwick Waters in Clyde North are being sold. Leggatt, who leads the company developing it, said.

“Interest rates are skyrocketing faster than ever before, creating a bit of uncertainty among buyers. I am waiting for you to arrive.”

RPM says buyers are eyeing West Melbourne, which accounts for 45% of lot sales, with demand shifting from Melton to Wyndham.

The Geelong growth corridor experienced the biggest drop in sales activity, with median lot prices down 0.5% to $380,000.

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