What Do Mixed Mortgage Rates Mean for Home Sellers Right Now?
Over the past few weeks the Reserve Bank of Australia (RBA) has maintained the cash rate at 4.35% therefore lending remained rather stable. Nevertheless, while the RBA deliberation, fixed mortgage rates set by different individual lenders are moving in different directions. Fixed rates are generally higher among some lenders while some others offering the rates are lowering them a bit, making a rather ambiguous situation for the borrowers. But firstly, what does all of this mean for property sellers in Australia, especially those who are thinking about off-market sale? Here is the list of advantages and disadvantages for the market and its per influence on you as a seller.
RBA’s Steady Cash Rate: A Positive Signal for Sellers
This may explain why the property market continues to be built on a firm ground following the RBA’s decision to maintain the cash rate. This normally suggests to buyers that borrowing costs are anticipated to be reasonably stable in the near term, when the cash rate does not change. This can be profit for sellers in the long run because there is continuous interest created by the buyers. When consumers are assured that they would not be paying a lot of money for borrowing, then they are ready and willing to invest on the market keenly.
While the RBA has chosen to keep things status quo for the time being they have intimated that further rate cuts may be made later in the year, facts depending with inflation. Today, though, the process is much more conservative, aimed at stability, which is good for sellers seeking a stable market environment.
Mixed Adjustments in Fixed Rates
While the RBA has applied steady rates some lenders have embarked on the process of tweaking their fixed rates, either upwards or downwards. Two of the lenders increased their fixed rates for both owner occupiers and investors by an average of 0.10%, three others reduced their fixed rates by an average of 0.13%. This is a mixed movement indicating that different lenders have different strategies in place due to the big picture volatilities.
For property sellers this can have a few effects. Divergence in the fixed rate changes may entice a broader group of consumer based on factors of fixed rate where some customer will require the fixed rate for security over some other fixed rate customer in anticipation of a decline in fixed rate charges. It’s possible to capitalize on this divergence in buyer motivation, particularly if you’re selling what is referred to as an off-market property – that is, a property that isn’t listed on the MLS.
Variable Rates Hold Steady, Supporting Buyer Flexibility
Some fixed rates have been adjusted as while some variable rates have not been altered in the recent weeks. However, there are still many adjustable rate that falls below 5.75%, For buyers who do not mind flexibility and well suited to variable loans, are still out shopping. On the same note, this is good news to sellers. As suppliers find options with highly containing variable rates, there can be early reactions whenever buyers use great forecasts for next year’s fluctuations in rates.
On the other hand, for the people planning off-market sale, the above stable variable rate environment will attract buyers who are interested in acquiring a property without waiting for the shifting of the market condition.
The Value of Off-Market Sales in Today’s Market
Sales that are not on the market are an effective strategic move when considering a changes in the rates. For the sellers who want to sample the market without advertising their property’s availability, off-market plan is useful in linking you with interested buyers who are on the lookout for specific, rather than general opportunities. In the current market with a lot of lending stability, people may consider off-market sales because it will not attract a lot of buyers that are interested in the property they are selling and may also be completed quicker than on-market properties.
Ready to Sell? Book a Free Appraisal with Vasttu. Picking your way through today’s selling landscape can be difficult, but knowing the trends of rate can give you an educated decision. At Vasttu, we work with off market sales to connect you to serious buyers using current lending terms to your advantage. We’re available to assist if you’re considering selling your home or want to get a general understanding the value of your property in today’s market —schedule a free appraisal. Whatever you are selling, be it off market or privately, let’s find the right buyer for your property.
