WHAT’S HAPPENING IN OUR MARKET? We don’t have a crystal ball but here are some of the things that we think will happen in residential property markets in 2023. 1. Interest rates to peak We’re yet to see the peak of interest rates but at this point, it’s likely to happen early this year. Conditions can of course change quickly however, as of writing, fuel prices have pulled back, supply chain blockages are improving and most recently, we saw inflation pull back slightly. 2. House price growth to start again House price data from Neoval, a new property analytics company backed by the White family, has already recorded house prices stabilising across Australia. While this may just be a temporary reprieve, at some point, increasing population growth and a shortage of homes will lead to price pressures that will overtake higher interest rates. 3. Apartment living to become more popular Inner city living wasn’t much fun during the pandemic. Much of what makes it great such as great restaurants and entertainment were not available. In addition, living in small places is more problematic when you need to work and study there every day. As a result, we saw record movement to regional areas and very high demand for bigger homes. This is now starting to change. 4. Rental pain to continue Population growth and restrictions to supply show up most quickly in the rental market. With population growth accelerating, as well as construction problems continuing to slow down housing supply, rents will keep increasing. One balancing factor will be lower levels of household formation. Moving out of home, or leaving a shared house, will become less likely as the cost of living continues to rise. And one thing we know for sure: no one rings a bell at the top or bottom of a market, so if the time is right, the time is right! If you’re considering a move, buying or selling, give us a call. We look forward to being of service to you in 2023.
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