It’s no secret that many segments of the property market have hit pause on their buying and selling plans, amid concerns over climbing interest rates and cost of living pressures.

But now might actually be the ideal time to upsize your home in Canberra.

In recent months real estate in our city has slipped a gear – and some believe the flatter market conditions could prove to be an opportune time to plot your next property move.

MARQ Partner and Licensed Agent Craig Chapman said softer markets can mean homeowners who have benefited from strong price growth may not need to save or borrow as much money to take the next step on the property ladder.

“In the current market, there is a chance that financially, the changeover could be narrower because of the softer conditions, and this can serve as a boon for buyers looking to upsize,” Craig said.

“It’s always important to remember that changeover prices are relative for buyers who are upsizing when buying and selling in the same market.”

Extreme and unsustainable property growth experienced during COVID-19 meant prices skyrocketed beyond expectation, and many buyers paid over the odds for fear of missing out.

CoreLogic data shows property values in the ACT rose by 38.3% between the onset of COVID and when values peaked in June 2022, with prices easing by 9% since then.

“Between mid-2020 until the end of mid-2022, Canberra sustained a substantial property boom that saw the median house price in our city tip over the $1 million mark,” Craig said.

“Sales activity was chaotic, prices went through the roof and buyers were making the most of the low interest rates and COVID pandemic conditions, which encouraged many of us to reassess our lifestyles after spending too much time in lockdown.”

But since then, Canberra real estate prices have settled, and in most areas have come back, with the median property price now at $833,155.

Adding further pressure to the market is interest rates. This month, the Reserve Bank of Australia increased the cash rate by another 0.25%, marking the 10th consecutive interest rate rise since May last year.

The move takes the cash rate to 3.6% – a new 11-year high – RBA Governor Philip Lowe has foreshadowed a possibly pause in further hikes depending on jobs and inflation.

Craig said buyers should look beyond rising interest rates to assess if the current climate is, in fact, better to upsize to your next property.

“CoreLogic data released this week shows new listings have been tracking 18% below 2022 levels so far this year, so there’s less available stock and there’s much less competition because most buyers are nervous about the interest rate situation,” he said.

“This means there’s just not that frenzied ‘snatch-and-grab’ market that we saw 18 months to two years ago and buyers can take time to make a decision, and in all likelihood have a better chance of securing the right home.”