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Upsizers win big despite property market slump
Looking for more space to spread out? Now could be the perfect time to make the move into a bigger home, according to a property researcher and expert analyst.
Upsizers win big despite property market slump
Looking for more space to spread out? Now could be the perfect time to make the move into a bigger home, according to a property researcher and expert analyst.
Speaking on a recent episode of the nestegg podcast, Domain’s senior research analyst, Dr Nicola Powell, reflected on some of the winners and losers in the property market of today, paying particular attention to upsizers and first home buyers as well placed to capitalise on market trends.
According to the analyst, it’s the upper end of the market that’s currently experiencing more substantial price falls than other areas in the broader property market.
“We’re seeing that top percentile of property is losing the most value compared to the other segments or price brackets,” she observed.
“What I think [this] presents is opportunities for buyers to upsize because what they will find is their sector – their price point – may still be rising.”
Price rises are still observable across a number of market segments, but because that upper end of the market is feeling the brunt of the falls, the “gap to upsize has actually decreased – it’s a smaller gap to jump upwards”, Dr Powell expressed.
She’s also lauding the ability of first home buyers to make their way onto the property ladder at the present time, “much sooner than they once thought”.
“Obviously, the amount that they need to save and their deposit is lower,” Dr Powell stated.
In addition to recent price falls, the initiatives that are prevalent across states and territories and even federally are contributing to the overall improvements in ownership mobility across the buyer segment.
Dr Powell’s perception of the market did lead her to provide the caveat: “If you are buying and selling in the same market, one counterbalances the other anyway.”
“It’s very hard, even as an analyst, to pick precisely the peak and precisely the trough.”
“You really have to factor in your own personal circumstances when you are buying and selling or you are looking for new rental accommodation,” she advised.
And despite the analyst’s optimistic outlook, she did acknowledge that individuals who are close to the end of their working life as feeling the heat due to the current conditions.
“I think the only segment that would perhaps find these conditions challenging are those looking to completely cash out of their home,” Dr Powell flagged, placing emphasis on those who are looking to transition into a retirement home.
As a result, “those coming to retirement [age] may feel the pinch a bit more than others”, she warned.
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