The housing market is changing in many different ways. AI, new digital tools such as apps, interest rates, sentiment, semigration, housing stock and types, area popularity, new agents and agencies — all of these can make the buying process somewhat confusing.
Traditional ways of approaching the residential property sales market are also evolving, with some of the old ‘rules’ no longer as effective as they once were. This is why Private Property exists: to provide you with information about the latest changes in the market, and how to adapt to them.
Five ‘old’ rules vs new and contemporary ways to look for a home:
- 1. Old rule: Inventory is low, so don’t be picky.
New rule: More homes on the market means you have options.
With the decline in interest rates, more people are able to sell their homes at better prices and can afford the dream home they desire. This means there will be more homes on the market, increasing competition and giving buyers stronger negotiating power. Sellers are also beginning to offer incentives, such as including pieces of furniture at no extra cost — something usually negotiated after an OTP is accepted.
- 2. Old rule: Homes are selling fast, so make an offer quickly.
New rule: Homes are not selling as quickly, so take time to weigh your options.
Given the volatility of the past five years, largely due to Covid-induced interest rate changes, homes may now take longer to sell. This, of course, depends on area popularity and whether the home is priced competitively. However, if a property has been on the market for over 30 days, it’s worth investigating why. You can indicate your interest and ask the agent to notify you of any incoming offers, allowing you to be ready to act when necessary.
In this current transitional market (early 2025), described by property economists as dynamic, the advantage belongs to neither buyers nor sellers. Once the market stabilises, we may return to the old rule where homes sell quickly.
- 3. Old rule: Sellers do not want to negotiate on price.
New rule: Sellers are willing to negotiate on price as the buyer pool is still small.
Many sellers have held off listing their homes, waiting for interest rates to drop, which limited the buyer pool. With recent rate decreases, sellers are more hopeful about getting the value they expect. However, many buyers are still only making enquiries rather than committing to purchases, so sellers remain open to negotiation. As the market prepares for renewed growth, the old rule may come back into play.
- 4. Old rule: The interest rate is high.
New rule: The interest rate has dropped but is expected to remain stable for a while.
The interest rate’s rapid climb post-Covid was devastating for the property market. Currently at 7.5%, it may hold steady due to global and political factors such as the US withdrawal of aid funding. These and other economic pressures may prevent further cuts. However, if you have a strong credit score and a solid financial history, you may qualify for the prime interest rate, which will help you budget better.
There is never a strictly good or bad time to buy property. It depends on your affordability. If you are timing the market for the best possible deal, keep an eye on interest rate changes.
- 5. Old rule: Buy a home to realise wealth through property acquisition.
New rule: Rent-to-Buy gives you an option to ‘test-drive’ a property.
While older generations viewed property ownership as the cornerstone of family security, today’s buyers are more flexible. That principle still holds, but many are hesitant to commit to buying due to a preference for a nomadic lifestyle. With remote work more common, younger buyers can live in different areas throughout the year — from city centers to suburban or peri-urban zones. This flexibility can make it difficult to decide where to settle down.
The Rent-to-Buy option is increasingly popular for those wanting to try out not just a property, but also the area, before making a full commitment.
