This is pretty much the same in Australia.
And if you're a buyer, it's even harder because nobody wants to sell right now, particularly established homes. It's mostly just new (and tiny) units/townhouses/apartments.
And if you're a buyer, it's even harder because nobody wants to sell right now, particularly established homes. It's mostly just new (and tiny) units/townhouses/apartments.
The problem is not with selling, there are no buyers now since the interest rates are going up.
I dont have the numbers but most houses dont have loans specially old people houses who want to downsize or kids want to sell because their parents have paswed away.
On the other hand most majority of buyers need loans which is expensive in a high interest scenario.
“…from 1999–00 to 2019–20, the percentage of Australian households that own their own home:
… Without a mortgage decreased from 39% to 30%. With a mortgage increased from 32% to 37%.”
And that’s only talking about owner-occupiers, not investment properties, which I suspect would overwhelmingly have mortgages.
You graph actually proves my point, amount of people with mortgages is increasing aka buyers need loans while old people who are selling who bought their properties 20-30 years back dont have loans.
Most people have variable-rate home loans. In the past few years, fixed five-year loans have become more common. Basically you're on a fixed rate for the first five years, and then after that you're onto a normal variable rate.
Most economists here predict house prices will fall further as people sell due to mortgage stress. At the moment it looks like most people are hanging on. Historically speaking, interest rates are still pretty low. And I think people are reluctant to sell due to fear they won't get a decent price, and that if they wait a few years house prices will be back up.