Property experts say the looming threat of higher interest rates is having a significant impact on the Hunter’s real estate sector.
In the past week, every single auction held was passed in, while rental vacancy rates are plumeting.
Property experts say the looming threat of higher interest rates is having a significant impact on the Hunter’s real estate sector.
In the past week, every single auction held was passed in, while rental vacancy rates are plumeting.
“Property experts say…” Oh, well then – if the EXPERTS said it, it must be right. The reason Hunter property sales are plummeting has nothing to do with a POSSIBLE interest rate rise. We’ve already had how many interest rate rises, and they never slowed buyers down. Not to mention it’s been a while since the last rise. So the argument makes no sense. The real reason Hunter sales have crashed is twofold.
1. Properties are TOO EXPENSIVE. The majority of properties in the suburbs directly surrounding Newcastle city and Lake Macquarie in particular are mostly run down weatherboard hovels, built in the 1940/50s. Yet real estate agents are telling vendors to list them above $400,000. It’s cheaper to buy 200m from the beach in Port Macquarie – in a quality brick home.
2. Mostly due to point 1 – people are expecting a property crash. I know I am. I have $270,000 in the bank earning 6.51% interest, praying the price correction comes soon. Government “saved” us from it when the GFC happened. If they hadn’t, everyone could afford to own the home they live in. So yippee – bring it on!