Across the country the volume of listings is down significantly compared to the same time last year. The Reserve Bank opened with the expected rate rise of 25 points in February and again in March and similar is expected for the next couple of months, although opinions are divided on how far the RBA will go.
So where does all this leave the property market for 2023? For a start, every market is good for someone however it’s easy to become overawed with what the right move is and consequently do nothing.
Much of the media commentary in 2022 was focused on a potential property market crash, with various “experts” predicting catastrophic price falls around the country.
However, the statistics tell a different story. Since 1987, Australia has only recorded five instances of nationwide prices falling, and in none of these cases have national home values fallen more than 5.5 per cent.
With the outlook for inflation improving, meaning interest rates should peak lower and earlier than initially expected, and a booming national economy that’s well-positioned to absorb higher rates, it doesn’t seem like these doom and gloom stories are going to come to fruition.
And while rising interest rates may impact buyer confidence and put the brakes on price growth in the short term, the effect we’re seeing is much less than was originally anticipated.
Underlying demand remains above supply, reflecting the lack of newly built housing stock and the resumption of overseas migration post-Covid. And if there’s one thing every economist, property expert and opinionated relative around the dinner table can agree on, it’s that when demand exceeds supply, prices rise.
Despite plenty of commentary to the contrary, there is still a lot of transactions happening. In the last 6 weeks our Agency sold 3 period homes in Kyneton at the upper end or beyond the Estimated Price Range and lifestyle acreages and equine properties have also sold well. Irrespective of market conditions, there is always high demand for quality homes in desirable locations and this is reflected in the competitive sale prices and quick turnaround times we’re seeing for well-presented properties in sought-after streets and localities. The strongest enquiry is in the $800k – $1.6million range so if you own a suitable property, or you would like to know more about the current market, please get in touch.
Robert Broadhurst
If you are considering taking the next step in your property journey, please feel free to reach out — we are here to assist.
