House prices are at peak
HOUSE PRICES AT PEAK – TIME TO CASH IN
As East Coast Property Prices Plummet South Australia Still Maintains High Prices – But For How Much Longer?
House prices are falling on the East Coast – and South Australia could be next.
We saw record prices across Australia during the COVID housing bubble – these prices were made possible by lowered living expenses and low interest rates. Both of which are changing every day.
As inflation takes hold and interest rates surge many homeowners are already being caught short and are unable to pay the debt they signed on for.
We have already seen stories from Melbourne and Sydney about homeowners defaulting before their houses are finished.
These defaults aren’t just new builds. The rate of mortgage defaults in affluent areas of Sydney are as high as 8.5%.
The knock on effect is that of lower prices, and more time on the market. We are starting to see properties take longer to sell in South Australia already, but haven’t noticed a significant drop off in prices just yet.
We are seeing eerily similar signs as we did during the lead up to the GFC when the median monthly mortgage payments jumped a whopping 39% before taking another 5 years to come back down.
When prices are at the peak of a cycle it is a great time to downsize. The inflated price of your property will free up extra cash to buy something more manageable and pocket the extra cash.
While those who don’t have a mortgage may feel safe and secure right now, but if you are looking to sell your property in the next 5 now will likely be the best time to do it.