Whether you’re looking to buy, sell, upsize, downsize, or invest, 2023 is the year to take action if you’re keen to make a move!
Make the best move you could make in property by taking advantage of the current property market conditions.
Read our Property Market Update for March to find out why…
Property market is returning to a more long-term normality
With the property market experiencing unprecedented volatility over the past three years, it’s understandable that potential buyers and sellers were feeling a bit overwhelmed. From sudden COVID-19 price rises in 2020/21, to the rate-hikes of 2022, it’s been quite a roller coaster ride!
But amidst all the volatility, the property market is in fact stabilising and returning to a more long-term normality.
While interest rates are significantly higher than the record lows of recent years, it remains well under the record high of 17.5 per cent in 1990. Having said that, once interest rates do stabilise, we can expect the market to consolidate and begin to show signs of recovery – most likely in the second half of this year.
Once property market recovers, values move to a new high
It’s important to remember that the downturn in property prices has come off record highs – residential property prices reached their strongest annual growth on record in 2021, rising 23.7% according to the Australian Bureau of Statistics.
While it may be natural to feel anxious when experiencing softening prices, it’s important to note that this was a normal part of the property cycle. Historical statistics clearly show that once the property market recovers, values for quality properties always move to a new high.
Good quality properties will ride out any market downturn and will perform extremely well over the long term, as the wheels of the market continue to turn towards the next growth phase.
2023 is the year to take action
We have seen a few weeks of normal real estate market activity, which gives us an idea of what the rest of the year might look like. What is becoming apparent to us, is that 2023 is going to be the year to be buying. If you look at the past downturns in the property market, it is unlikely that there will be a better time to purchase a property.
For those looking to downsize, it’s a great time to take advantage of the market and put away some equity in a less frantic market where there’s less competition from first homebuyers coming from Sydney looking to secure villas, townhouses or apartments.
Those looking to upsize, now could be the perfect time to take advantage as percentage decreases naturally result in larger dollar amount discounts the higher the property price. Whilst you’re still spending more, you may find that you can get significantly more value for your money.
Ultimately, if you want to take advantage of the current market and are keen to make a move, now is definitely the time to act! With the market stabilising, the next 12 months could be the ideal time to make the best move you could make in property before the next growth cycle begins.
Unique window of opportunity
In the meantime, property investors can take heart from the resurgent rental market, which will provide welcomed extra income and help offset increased mortgage repayments.
Rent values have lifted more than 22 per cent from September 2020 to January 2023, the largest increase since CoreLogic records began almost 18 years ago.
The strong rental market, combined with softer competition and prices is likely to see many investors consider re-entering the market this year, particularly now that the market is reaching the bottom of its cycle and once rates stablise.
Also for those who have owned their home for 5, 10, or even 20 years, they’ve seen their home loan balance reduce and their equity increase over time, despite the fact that interest rates have been higher. For these home owners it’s the perfect time to also consider an investment property.
The coalescing dynamics provide a unique window of opportunity to secure quality assets in reduced competition, and lock in strong long-term capital gains, strong rental income, while prices remain subdued; before the market eventually cycles back to its next growth phase.
As you can see, with a longer-term perspective, the path ahead looks promising and provides investors with the opportunity to take advantage of the current market conditions!
Make a big difference by doing something simple
February was Ovarian Cancer Awareness month, and at Ray White Macdonald Partners we’re doing our part to raise funds in support of this very worthwhile cause!
For each property appraisal we conduct until the end of March, we’ll be donating $30 to Ovarian Cancer Australia. Plus, if you decide to sell your property after having the appraisal at any time, whether it’s now or in a few years, we’ll be donating an extra $1,000 to Ovarian Cancer Australia.
More about Ovarian Cancer Australia:
It’s an independent national not-for-profit organisation, supporting women diagnosed with ovarian cancer. Their focus is to provide care and support for those affected by ovarian cancer; and represent them by leading change. Their vision is to save lives and ensure no woman with ovarian cancer walks alone.
Doing something as simple as having a property appraisal with us can make a big difference in the fight against ovarian cancer. So please, take this opportunity to help us raise funds in support of a great cause – it’s as easy as just reaching out to us by requesting a property appraisal below:
