When you’re thinking about buying a property, you have many questions. The mortgage rate, the house price, and whether it’s a buyer’s or seller’s market are just some of them. To help you make an informed decision about your next move, we asked four industry experts to share their housing market predictions 2023.
One of the biggest concerns for homebuyers in Australia is mortgage rates. They are a major factor in your mortgage payments and your overall cost of borrowing. This is because they can affect your ability to pay back your loan and also influence how much house you can afford.
Inflation is another issue, as well as unemployment. Inflation can increase the amount you have to spend on items such as utilities and mortgage repayments, and it can lead to rising prices.
The Reserve Bank of Australia (RBA) has raised the official cash rate eight times since May this year, erasing more than 25% of buyers’ borrowing capacity and throttling demand, experts say. This has impacted property prices nationwide.
Experts predict that national house prices will begin to rise in 2023, although Sydney and Melbourne homeowners will see a slower rate of recovery. This will be driven by record-low vacancy rates, an undersupply of houses for sale, relative affordability, and strong local economies in regional Australia.
Home Prices in 2023
Inflation is expected to continue to be a key factor in Australian house prices in 2023. Inflation is expected to peak at 8% in 2023, up from this year’s 7.3%. The RBA is also likely to raise the official cash rate at least once more this year.
Unemployment is also a concern, as it can cause people to default on their mortgages or have trouble paying them off. However, unemployment levels remain low, which will help keep mortgage arrears to a minimum.
Housing Inventory in 2023
There are currently around 1.3 million homes for sale in Australia, and that number is expected to grow over the course of the year. But Meyers says it’s still too early to know whether the housing inventory will be enough to meet demand.
As a result, it’s likely that some markets will continue to be sellers’ markets, while others will become buyer’s markets. That will be dependent on the economy, unemployment levels, and interest rates.