We finished 2022 with one more interest rise, taking us to a 10 year high, and house prices having dropped by 4.5 per cent since they peaked in March this year. While certainly a very different market to 2021, and an easy one to be negative about when it comes to property, it isn’t all doom and gloom. Inflation is starting to slowly come back and house price falls took a break in November, stabilizing over the month. While interest rate increases may not be over and house prices may continue to fall, it’s starting to look like the worst is now over.
This month in Ray White Now, we take a look at 2023 and provide our predictions as to what will happen to both residential and commercial property. Residential property markets continue to show quite divergent activity depending on where you are. Sydney continues to lead the way for falls, driven by much higher debt levels while Adelaide has only recently started to fall. Population growth however continues and will accelerate next year.
This is most clearly showing up in rental increases but will start to influence house prices in 2023. Given it’s unlikely that Australian house price falls will reach anywhere near a 10 per cent decline, affordability will continue to be a hot topic and Government policy will continue to focus on supplying enough homes in places people want to live.
Commercial property is also being impacted by higher interest rates but similarly to residential, performance also depends on the property type and its location. Value-added assets are expected to be in high demand while anywhere with strong population growth will do well.
We hope you enjoy this month’s Ray White Now and we look forward to providing you with more property market information in 2023.
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Australian house and unit prices continue their upward trend this month, albeit at a slower pace. Both housing types saw a modest 0.2 per cent appreciation. However, the market is exhibiting greater diversity across states and regions, reflecting varying local economic conditions. July’s CPI results indicate a continued downward trend, … Read more