The Reserve Bank has today lowered the official interest rate to a new record low of 1.75%. This cut was well received by the market and the majority of analysts are now predicting another rate cut in the not too distant future. Almost all of the major lenders having already come out and announced they will pass on the full interest rate cut so most mortgage holders on a variable rate will see some saving.
With record low interest rates and prices that have cooled 5 – 10% off the peak of last year, this sounds like a great time to buy, but there’s nothing on the market… Just take a quick look at the usual real estate sites or check the windows at your local real estate agent and you will see there is not much advertised or selling, but looks can be deceiving!
Many home owners are choosing to sell their homes off market or ‘unlisted’ at the moment. Why would anyone do that you might ask? There are many reasons why someone would prefer to sell off market, here are just a few of the most common at the moment;
If you sell off market or unlisted you don’t have open inspections or a big sign out the front of your home inviting the world to come in and take a look at your most prized possesions. You don’t need to clean like a maniac twice a week or paint the bedrooms, fix up the garden, or any of the other things that have been on your ‘to do’ list for years.
Another reason people are choosing to sell off market or unlisted at the moment is so the neighbours don’t ask you how much you want for your home or how much you sold it for, which is really very handy given that in this market you are probably selling for 10% less than Dave across the road got last year.
So, how can you use these record low rates and cooler market to buy your new home or investment? With not many properties listed for sale right now, maybe its time to look off market or ‘unlisted’ too.