Pick up a newspaper you’re likely to come away with a pretty negative opinion about the Australian real estate market in 2023. Sure, interest rate rises and softening property prices may have given us a bit of a roller coaster ride of things lately. But at the Henry Wong Team®, we believe things aren’t as bad as you might be led to believe.
We all know the facts. Australian mortgage payers have been hit with nine straight interest rate raises in a row. We haven’t seen anything like it in years, with our official cash rate now sitting at 3.35%. The move by the RBA to fight soaring inflation has had an effect on everybody’s pockets, particularly on homeowners paying off their mortgages.
There’s a lot to be positive about in the real estate industry this year, particularly if you’re thinking of selling your home. Today we want to share some of the reasons with you!
Demand for Homes is Still Higher than it Was Before the Pandemic
It’s easy to let the out of this world real estate boom that happened during the pandemic cloud our vision of what is normal and sustainable. When COVID-19 hit, returning citizens and a huge sense of FOMO cause house prices across the country to boom, with an overall jump in property values of 25%.
Things are levelling off now and coming to more sustainable levels. The buyer numbers might not be what they were in 2021, but we have to remember that there are still more buyers than there were before the pandemic. We’re in a stabilisation phase, one that shouldn’t induce panic but should be seen as natural.
Interest Rate Rises Will be Slowing Down Considerably
They’ve been a tough pill to swallow for everybody, but all expert opinion points to the fact that interest rate rises should slow down in 2023. Buyers are going to be taking that into account when applying for mortgages, so there should be less trepidation in entering the market. We’ve basically returned to interest rates that more closely resemble normality, rather than those inspired by historic lows in the cash rate.
People were expecting the rates to go up, now they have. Buyers aren’t shocked by them – they’re adjusting and the buyer demand is still there. It will just be put into the context of higher interest rates.
The Rental Market Remains Extremely Tight
There’s been a rental crisis reverberating around Australia for months now, with overall rent up by 11.4% in Brisbane in 2022. There simply isn’t enough supply to meet the demand of people looking to rent. People still need a place to live, so many people failing to find a rental are turning to buying a home instead.
Migration has returned, as have overseas students, so it’s unlikely the demand will decrease at any near point. With rental yields sitting at impressive highs, investors are coming back to the market too.
A Savvy Real Estate Agent is Key
If you want a good return on your home, an expert real estate agent is your ticket to higher returns. Well-presented homes are doing really well in Australia at the moment, and your agent should be able to give you plenty of pointers in preparing your home for sale. Some of the things to look for in an agent include:
- A large network: As well as having contact with trusted local tradespeople to help get your property ready for market, the larger their network the more traction they will get on your listing.
- Social media reach: Having a large social media following removes the reliance on the main real estate portals. It gives every listing of an agent exponential coverage.
- Track record: Always ask for past sales information and auction clearance rates. Check out an agent’s online reviews for an indication on how they have performed for other vendors.
Is the Time Right for You to Sell?
Something of a mantra for us is that you should let your decision to sell be dictated by your life circumstances. If it’s time to move onto the next chapter, you’ll know that it’s the right thing to do. You can’t base your big life decisions on the market too much.
If you are thinking of selling, get in touch with The Henry Wong Team®. We’re the leading social media agents on the Brisbane southside, with a Facebook following of over 12,000 people. We also have a huge network around Brisbane, Australia and into overseas markets, particularly amongst affluent Asian buyers.
If you’re looking for a real estate agent you can trust to get you a great deal, give Henry a call today!