The state of the Australian property market is a topic of conversation that we’re hearing and talking about more and more, and there’s a note of concern starting to creep in and rear its ugly head.
With interest rates going up and house prices heading in the opposite direction, what does that mean for you if you’re looking to sell, buy or invest in real estate in the next 12 months?
Well, the latest opinions from banks and experts in November 2022 are a little bit at odds.
The big banks expect 2023 to be a year of significant price decreases with all four major banks predicting falls – NAB expecting combined capital city prices to decline 11.4%.
Combine this with the rising cost of living and we can say goodbye – at least for a while – to the heady days of 2021 when prices on the property market soared to record highs.
Australian property market in 2022 – a changing landscape
After an incredible boom the Australian property prices started to roll over in June 2022 led by Sydney, which fell for the first time in two years – 2.7 % over the June 2022 quarter.
Source: CoreLogic index, rebased to 100 5 year ago, updated daily, 23rd September 2023
Prices are falling across all cities, with the number of days since the peak and the percentage fall outlined below.
Source: CoreLogic Index, updated daily, 23rd September 2023
Considering the interest rate predictions of the big four banks, it’s easy to see how that note of concern we mentioned at the beginning is starting to creep in.
