A glimpse into 2023

What will the housing market look like in 2023?

What can we anticipate over the Christmas season? Contrary to popular belief, people do buy and sell homes during Christmas, as well as all throughout December and January, despite any distractions caused by the holiday season.

Evaluating the trends in the property market for 2022

The high-end market continued to perform well, the shift to the regions slowed somewhat but not completely, southerners continued to migrate north, the CBDs started to pick up across the nation, the construction industry started to pick up steam, and rents skyrocketed.

Properties are selling slower on average compared to the same period last year, indicating a cooling market that I refer to as a correction back into normal market conditions.

The property cycle is in a different stage for each state. Each capital city has a variety of marketplaces, some of which have declining prices, some of which are stable, and others that are even continuing to rise. Houses, apartments, townhouses, and units in the outer, middle, inner, and central business districts are markets within markets.

There is no justification for predicting a significant crash given the current status of our economy and the real estate markets in general. Keeping in mind that market forecasters have a more difficult job than weather forecasters, what should we expect for 2023?

Although interest rates are rising, they are just one of several variables that influence housing prices.

Good homes are hard to come by for sale, and there are hardly any available for rent. The demand for housing will inevitably rise as a result of international immigration. Building new homes is insufficient. Government subsidies entice first-time purchasers to enter the market. We are informed that household balance sheets are robust, with many borrowers current on their mortgage payments, and that wages are beginning to increase.

Let's examine the situation. Even if interest rates are rising, they are still far below where they were before the pandemic. There are several occupations available. The RBA, lenders, and governments, in my opinion, would rather protect mortgage holders than see the property market fall.

Saving for a down payment is becoming more difficult due to rising inflation and living expenses, and purchasers are not able to borrow as much as they were when interest rates were lower.

If you are financially secure, on the other hand, take action while everyone else waits and observes. When others zig zag. If you can, be the smart consumer who goes differently from the rest. Take action when there is less competition and you have more time to do your homework and research. The epidemic brought attention to the value of residing in a suitable neighborhood and type of property. Future performance is anticipated to be better in lifestyle and destination suburbs with a wide range of amenities that allow people to work, live, and play within a 20-minute drive, bike ride, or walk from home.

- Louie Pigar

- Published on December 28, 2022