The Changing Real Estate Landscape: What Homeowners Need to Know

In today's dynamic real estate market, we're seeing interesting trends that both homeowners and potential buyers should be aware of. Recent data from SQM Research reveals some important shifts in property listings, particularly in New South Wales and Victoria.

Rising Distressed Listings

* NSW saw a 16.3% increase in distressed property listings compared to last year.

* Victoria experienced a similar trend with a 15.6% rise.

* These "distressed listings" are homes marked with phrases like "urgent sale," "must sell," or "price reduced."

However, it's crucial to note that despite this increase, we're still below pre-COVID levels of distressed sales. This suggests that while some homeowners are feeling pressure, the market isn't in crisis mode.

Factors Contributing to the Trend

1. Interest Rate Hikes: 13 consecutive rises have impacted mortgage repayments.

2. Cost of Living: Increased expenses are putting pressure on household budgets.

3. Economic Uncertainty: Some owners are selling due to concerns about future market conditions.

What This Means for You

For Homeowners:

* If you're feeling financial pressure, explore options before considering a sale:

- Refinancing your mortgage

- Negotiating with your bank for better terms

- Cutting back on discretionary spending

- Seeking additional income sources

For Potential Buyers:

* More listings mean increased choice in the market.

* However, experts don't predict a significant price drop due to the current listing volumes.

Looking Ahead

The future of the market largely depends on employment rates. As long as unemployment stays below 6%, we're unlikely to see a major spike in distressed sales.

Remember, every financial situation is unique. If you're concerned about your mortgage or considering buying in this changing market, don't hesitate to reach out. Our team is here to provide personalized advice and help you navigate these challenging times.

This information has been prepared by PHA Financial Services and does not take into account your objectives, financial situation or needs. Before acting on this information you should consider whether it is appropriate to your situation. We recommend you obtain financial, legal and taxation advice before making any financial investment decision. The information provided was accurate at the time of publication and changes in circumstances after a document is published may impact on the accuracy of information. Some information may have been collated from various third parties and we make no assertion that the information was originally ours.