2023 looks promising for Australia’s housing market. Experts predict a potential housing boom, which could surge to nine per cent anytime next year. Leading the recovery phase is the New South Wales capital. Sydney is about to experience massive gains of approximately up to 12 per cent, provided the Reserve Bank of Australia does not increase interest rates beyond four per cent and make homebuyer-friendly adjustments at some point in 2023.
In a report released by Christopher’s Housing Boom and Bust for 2023, researchers tackled four different scenarios to predict the events likely to occur in the coming year.
As long as interest rates across the country are below four per cent, the real estate sector will only get a boost of around three to seven per cent.
If interest rates drop, the property market of Australia is likely to increase by nine%.
Some properties become less valuable over time, dropping 6% of their value. This is particularly true in the case of continually rising interest rates and inflation.
Once interest rates are better managed, the real estate market will have a quicker and easier time recovering.
Australia's cash rate is 2.85% at present. As the country becomes more accessible to tourism and overseas arrivals, the economy will then start tapping into its strengths. However, factors like sudden increase of rental home prices or land taxes often indicate something is in the air. These are tell-tale “signs” of a possible price rise.
At present, there is high demand for suburbs. Recovery is sluggish but progress is evident. “No doubt it will be a very challenging year for the RBA," said Louis Christopher, managing director of SQM Research, who wanted to "walk their tightrope and pull off a soft landing for the Australian economy."
Remember that competition is tough when home prices are low and there is enough supply to meet your demands. Here are some useful tips to help you prepare for a housing boom:
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