More Signs Of A Buyers Market In 2023 And 2024

According to a report by Lightstone Property, the number of homeowners being forced to sell properties has increased by 80%, adding to the signs of a buyers market in 2023.

The increase in distressed property sales points to the fact that many buyers took advantage of the low interest rates during Covid. Only to find they could not afford their new bond repayments as interest rates normalized a couple of years later.

The prime interest rate hit a multi-decade low of 7% in 2020 and remained below 8% until May 2022. Successive rate hikes have since then pushed prime to 11.75% in May 2023.

The report also notes that the exceptionally low interest rate environment created an opportunity for new buyers to enter the market. And for existing homeowners to 'buy up' – but it also created the possibility of too many buyers overstretching themselves.

Homeowners Are Now Struggling

Many homeowners are now struggling to keep up with their bond repayments.

Buyers should carefully consider their financial situation before purchasing a property and speak to a bond originator about their options.

It is important for homeowners to be aware of the risks associated with taking on a bond, and to ensure that they have a solid financial plan in place to avoid being forced to sell their homes.

It is true that the current trend of homeowners being forced to sell their homes is a clear sign of a buyer's market. However, this trend is also indicative of a larger problem - many homeowners are struggling to keep up with their mortgage payments.

Downsizing your property may be a viable option for some homeowners, but it is not a one-size-fits-all solution. It is best to carefully consider your financial situation and to seek professional advice before making any decisions.