Since early December 2022, the pundits have been fighting amongst themselves about what 2023 will do to house prices. Bliss Conveyancing has spent the Christmas break shaking off 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 is given you an expert view of what 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 one of the 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 demands include:
- Balcony; and
It’s a timely reminder for us all to keep our head on straight as we plunge into 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, and this can create fragmentation. What this means, for those of us without mathematics degrees, is an easing of the prices of detached dwellings may create opportunities for those in units to upgrade to a house.
Emily Power agrees with this sentiment and 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 identifies how 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. So take in all the information you can, but be sure to actually go to the areas that interest you and speak to local agents about opportunities that might be around.
Most of the commentators also concur that migration will have a positive effect on the market. In all the craziness, we have not realised that the massive gains in our property market occurred when the borders were mostly closed.
As Australia begins to open migration opportunities, this will likely create an increase in demand for properties and provide some buoyancy to off-set the pressure of rising interest rates.
Wishing you a happy and successful 2023 from all of us at Bliss Conveyancing, and please feel free to reach out if you would like more information, or for us to put you in touch with one of our many property market experts.