Housing Boom

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.

What to Look Forward to in Next Year's Housing Market

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.

Scenario 1

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.

Scenario 2

If interest rates drop, the property market of Australia is likely to increase by nine%.

Scenario 3

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.

Scenario 4

Once interest rates are better managed, the real estate market will have a quicker and easier time recovering.

Price Rise Signals

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."

Preparing for a Housing Boom

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:

  • Clean your credit history (where possible)
  • Pay debts and have multiple income sources
  • Decide whether you are going to pay in cash or get a mortgage instead
  • List down the properties you are seriously considering
  • Study the market and note down advantages and disadvantages
  • Organise your documents
  • Stick to your budget
  • If auctions and negotiations yield no result, opt to buy off the market
  • Keep posted on real estate news and trends
  • Consult experts or ask for their advice before you proceed with your next move

Where to Buy Property in Canberra

Is it your first time buying an investment property in Canberra? Are you looking for properties that offer real value for your money? Get in touch with our in-house independent buyers agents for more information. Talk to us over the phone or visit our website.