A Quick Outlook at The Year Ahead
Weekly Real Estate Market Update with Leigh Martinuzzi MPG
We will likely continue to see a slowing market in 2023, with an expected bottom of the market towards the end of September. Experts are suggesting that we will see a top to bottom fall in property prices of about 15-20%, with market prices potentially falling a further 9% this year. The impact of rate hikes and high inflation are the key reasons for a slowing market. However, we may avoid a recession and likely see inflation fall and the RBA slow the rising cash rate. In the final quarter of 2023, we may even see prices start to rise again, and we may expect a buoyant market in 2024.
What does this mean for those wishing to sell this year? Don’t panic! On the Sunshine Coast and locally in Palmwoods, Woombye and the surrounding areas properties are still selling for great prices and generally within quick timeframes. The key difference is that there are not as many buyers, due to high-interest rates and reduced borrowing capacity, and there is less frenzy purchasing. For well-presented properties which are priced right, we are still achieving great results. 28 Old Orchard Drive in Palmwoods sold within one week for $975,000, which is a street record. We also sold 63 Palmwoods-School Road above the asking price for $971,000, which is another street record.
To say the market isn’t performing is an understatement. Yes, prices are down and moving at a slower pace, but prices being achieved are still above the median house and, in my opinion, this is a sign of a confident market. Although it is just the beginning of the year and we don’t see things really start to pick up well into February, I still feel there is a shortage of good homes for sale. Buyers are still showing signs of caution and are generally not willing to pay above fair value if the property doesn’t represent it. Also, the price of building new is high and the timeframes to build are being pushed well out. This will bring more demand to established dwellings. I expect we will see a flurry of new listings hitting the market in the lead-up to Easter.
AUCTION CLEARANCE RATES
- Queensland – 23% (35/1083)
- NSW – 62% (13/732)
- Victoria – 58% (24/835)
- ACT – 80% (5/58)
- South Australia – 36% (11/275)
- Tasmania – NA (1/136)
- Western Australia – 100% (3/668)
- Northern Territory – NA (0/18)
*(Auctions/Private Sales)
REVIEW(S) OF THE WEEK
Absolutely thrilled.
We couldn’t be happier with our experience and the outcome of selling our property. Leigh has such vast local knowledge and is truly invested in the local area, his track record speaks for itself, so choosing him was a no-brainer. He set clear expectations from the start, which were also in line with our selling goal. The whole process, including communication, marketing, inspections etc was straightforward and stress-free. Overall, we were thrilled with a quick sale at the price we were wanting. We would highly recommend him to anyone wanting to buy or sell. – Seller
