Is There Ever a ‘Perfect’ Time to Buy Property?

We’ve been getting asked a lot lately: Is now a good time to buy?
And with unemployment rising and interest rates currently on hold, it’s an interesting question.

Historically, a weakening labour market can reduce pressure on the RBA to keep increasing interest rates. But that doesn’t mean rates automatically fall – or that waiting for the “perfect” moment will necessarily leave you better off.

So, what does the current economic picture mean if you’re thinking about buying a home?

Here’s what we know…

– Unemployment has risen to 4.5%
– The RBA has held the cash rate at 4.35%
– The labour market is cooling
– Inflation is still above the RBA’s target
– National housing market growth has slowed

And, here’s we don’t know…

– Whether interest rates will stay where they are
– When – or if – rate cuts will happen
– Exactly what property prices will do next
– Whether waiting six months will actually make buying easier

And that’s the tricky part; there isn’t a universally “best” time to buy property.
There’s a best time for you to buy.

Waiting for interest rates to fall might sound sensible, but lower rates can also bring more buyers back into the market. And if more buyers are competing for the same properties, that can influence prices and competition.

Equally, waiting for property prices to fall isn’t necessarily a strategy either. No one knows with certainty what prices will do six or twelve months from now.

But, what about Perth?

This is where the national headlines don’t necessarily tell the whole story.

Perth has its own employment, population, supply and demand dynamics, and our market doesn’t always move in lockstep with Sydney, Melbourne or the national market.

So, if you’re considering buying in Perth, it’s important to look beyond the national headlines and understand what’s happening here and, more importantly, what’s happening in the particular suburb and price bracket you’re looking at.

Ultimately, the “perfect” time to buy isn’t necessarily when interest rates are at their lowest or property prices are at their cheapest. It’s when the property, the price and the repayments make sense for your individual circumstances – and you’re comfortable with the commitment you’re making.

There will always be another economic headline, another interest rate prediction and another reason to wonder whether you should wait.

Sometimes, the better question isn’t “Is this the perfect time to buy?”
It’s “Does buying make sense for me right now?”

This article represents The Perth Property Co.’s observations and opinions based on current market conditions and is not intended to constitute financial advice. Buyers should seek independent financial advice appropriate to their individual circumstances.