The fiscal and monetary handbrakes are being applied simultaneously to stop seemingly out-of-control inflation with the real estate market being collateral damage.
Between the cost-of-living pressures, rapidly increasing interest rates, and uncertainty around the building industry, the beautiful smooth open highway of endless property gains until 2024 is very suddenly filled with potholes, some of which could be quite deep. Real estate values are swiftly changing across certain submarkets!
The most recent evidence indicates a market already repositioning itself with the fear of missing out being replaced by a “let’s wait and see” approach from buyers. Values are stabilising in desirable areas and coming back marginally in secondary properties.
The two main drivers of real estate values are interest rates and employment. The rates appear to be normalising off a very low base and curbing what was becoming a sense of overexuberance from buyers and employment looks solid going forward.
Cost of living pressures are also part of the picture but being a supply-led issue, this should be relatively short-lived (pending any further conflicts). This will help with the all-important inflation problem.
Acumentis is actively monitoring any property oversupply situations but the huge rise in building costs and the lack of available builders will likely keep this low.
How does this affect you as Family Lawyers?
You may have some cases that span years, but the market is changing much faster than that. So, the key is that as the end event of separation draws close, whether that be a mediation date or days/s, it is imperative that you get the most up-to-date valuation advice possible.
This is where Acumentis can assist with a highly experienced team of family law valuers. They have their figure on the property market pulse and know the market movements and recent sales in their local area to arrive at an accurate and substantiated valuation.
With 45 offices across the nation and valuers specializing in residential, commercial, and rural properties Acumentis can support all property valuation needs.
Reach out to the friendly family law team to discuss.