The property market is no longer moving as one.
We’re seeing a clear split into two distinct buyer groups, and this divide is shaping outcomes at auctions and in negotiations right now.
As a buyers agent working with clients every day, this two-speed reality is very obvious on the ground.
Interest Rates Aren’t Affecting Every Buyer the Same
Higher interest rates and tighter lending standards are hitting buyers very differently.
Strong Buyers (Still Competing Aggressively) Buyers with:
- large equity positions
- family assistance
- cash
- or very strong household incomes
…are largely unaffected and are still competing aggressively, often driving multiple offers and strong results on the right properties.
Finance Dependent Buyers (Stepping Back) Many buyers relying heavily on bank loans, first-home buyers with smaller deposits, and households with tighter serviceability are finding conditions much tougher. They’re withdrawing from the market, looking at cheaper properties, or pausing their search altogether.
The Result: A Genuine Split Market
This has created a two-speed market:
- Well-presented homes in desirable locations are still seeing strong competition and solid prices.
- Average or tired properties are taking longer to sell with limited interest.
It’s no longer accurate to say “the market is up” or “the market is down.” The real question now is: which buyer group are you competing against on this property?
Why This Matters for You
Understanding this split can save you months of frustration and thousands of dollars. Many buyers waste time chasing homes that are realistically only achievable by the strongest buyer group.
The Bottom Line
The market hasn’t crashed, and it’s not booming everywhere. It has split, and this divide is likely to continue while interest rates stay elevated.
Buyers who understand this new reality and know exactly who they’re up against are the ones buying well right now.
Need help navigating the current split market? Whether you’re a first-home buyer, upgrading, or investing, We’re happy to have a confidential chat about your situation.
Reach out via the contact form or book a call.