Reflecting on the last four years, we see an interesting pattern emerge. In the 2021 and 2022 years while interest rates were low and demand seemed high, many people had the confidence to step out and increase their mortgage and upgrade. It may have been the family home, the investment portfolio or the holiday home. Everything looked great and confidence was on a high.

Following that we have had another two years where almost the complete opposite has occurred. People reducing debt, downsizing and lacking in confidence to make a move. The issue with both those phases is that when people want to borrow more and move up the proverbial property ladder, then it seems to be an easy thing to do so long as the new, bigger or better property was available. It was a race to the top.

But moving back down the property ladder is not so easy. Especially when the majority of the people who want to make a move in the market are doing the same thing at the same time. As people have sort to sell the larger property and move to a smaller property the balance of people moving up the ladder has simply not been there and thus the whole thing comes to a grinding holt. If you’ve had a premium property or a lifestyle property and had difficulty selling it, then that has probably been your issue. Only thing to do to get sold is significantly reduce your price expectations. And the few buyers that have been shopping at the top of the ladder have taken advantage of that.

Today, we still see a lack of buyers in the realms of the upper rungs of the property ladder. However, the good news is that there is a lot more hope now that those buyers are coming.

The lower ‘rungs’ are beginning to spin. And spin quite quickly. Banks are flooded and a little overwhelmed with loan applications right now. A mortgage broker tells me they are caught a bit short having reduced lending staff during the quite times. Seems a plausible reason to me. Despite that, our sales team are advising buyers to allow themselves plenty of time to get loans approved.

The first home buyer and investor markets seem to be very busy. And as that happens the logical next phase of the market will be the second home buyers upgrading, then third home and so on. By the latter half of the year, I believe we will see movement happing at a steady and reasonable pace across all levels of the property ladder.

Our advice this month comes from Lord Baden Powell, the founder of the scouting movement. “Be Prepared!”

Buyers, get your information and advice from your lender or mortgage broker early. Sellers, use the time between now and the time you want to sell for smartening up your property presentation so that you can catch the buyer’s eye early. And always seek the wise advice of one of our fantastic EVES salespeople.