This article is for general information purposes only and reflects the state of information at the time of publication. It is not legal or financial advice. Always seek professional advice tailored to your specific circumstances before making decisions.
Since early December 2022, the pundits have been debating what 2023 will do to house prices. Bliss Conveyancing has spent the Christmas break cutting through the ups-and-downs of market opinion to bring you a more pragmatic view of what this year might look like.
Don’t Rate Everything
Yes, everyone from your bank to your barista has offered their expert view on how interest rate cycles will affect you this year. However, the ‘voice of Domain’ Dr Nicola Powell calls for us to recognise that interest rates are only one of many influences on property values. In her end of year wrap, Dr Powell lists some surprising trends driving demand for property, based on keyword searches. These include:
- Waterfront
- Pool
- Balcony
- Study
It’s a timely reminder to keep a clear head as we navigate another year of chatter about wages, inflation, and interest rates.
Your Pot Plants Could Become a Garden
Experts agree that there are markets within markets, creating fragmentation. For those without mathematics degrees, this means an easing of detached dwelling prices may create opportunities for unit owners to upgrade to a house.
Emily Power adds that any downturn in prices will likely be shorter and less severe than the pandemic-fuelled increases.
Seek Opportunities for Yourself
Real estate commentator Michael Yardney notes that each State is in its own stage of the property cycle, and even within those states, some areas are stagnant, some are falling in price, and others are still rising. Take in all available information, but be sure to visit the areas that interest you and speak to local agents about opportunities that might exist.
Incoming
Most commentators also agree that migration will positively affect the market. In all the craziness, it’s easy to forget that the massive gains in our property market occurred when borders were mostly closed.
As Australia opens migration opportunities, this will likely increase demand for properties and provide some buoyancy to offset the pressure of rising interest rates.
Wishing you a happy and successful 2023 from all of us at Bliss Conveyancing. Please feel free to reach out if you would like more information, or for us to connect you with one of our many property market experts.
