THIS MONTH IN RAY WHITE NOW
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 , stabilising 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 reading this month ’ s Ray White Now and we look forward to providing you with more property market information in 2023 .
Nerida Conisbee Chief Economist Ray White Group
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