Brighter Buying

Market update: #4 reasons to be optimistic about 2023

by Justin Watt, CEO 9 March 2023

With each rate rise homeowners tighten their household budgets that little bit more and news headlines scream of mortgage stress.

A lot of Aussies are grappling with finances at present and that can be tough.

But amidst the doom and gloom, is there a genuine reason to be optimistic about the year ahead?

A recent article on pointed to not one, but four reasons why home buyers and sellers can feel that better days are ahead. Here is what they said:

  • The uncertainty around interest rates and borrowing capacity will ease as rate rises level out.
  • Most homeowners have strong equity in their homes given prices remain much higher than pre-pandemic levels.
  • Housing demand remains very strong and rental demand also remains high.
  • Building construction will continue at a ‘solid rate’.

So all up what does this mean for those lamenting their property market woes?

“In conclusion, higher interest rates mean market activity is unlikely to return to 2021 levels. But strong underlying conditions in the market are likely to support higher rates of activity than was seen before the pandemic.”

So we’ll level out to a pace where sellers will enjoy strong interest and buyers will enjoy a more moderately paced buying journey.

Meanwhile, good value buying opportunities continue and sellers are enjoying demand given the reduced stock levels on the market.

If you’re thinking of selling, have a chat to your local agents to find out what’s happening in your area and how you can leverage the changing market conditions to your advantage.

Thinking of making your move?

Book a valuation or talk to us about selling.