Will 2023 be the year to buy property?

2023 has kicked off with a bang along with plenty of negative commentary and predictions about the future of the property market. But is it really something to be concerned about? Will the property market crash this year??

Many home sellers who have been contemplating making a move, ask us whether they should hold off and wait, or jump right in and ride the rest of the wave? We look at each of these scenarios below but firstly take a look at the reality of the current picture for the Sydney property markets.?

During 2022, eight successive rate rises aimed at offsetting high inflation caused a major panic across the property market. Many sellers and buyers chose to sit on the sidelines to watch and wait, resulting in a decline in auction clearance rates. Following a transition or adjustment period over the Winter months, we then experienced a shortage of properties for sale during Spring which is typically the busiest time.?

This shortage in supply fortunately kept the market afloat during the lead up to Christmas, and values held reasonably firm for good quality and well located properties. Overall Sydney prices fell approx. 7% this year since March, escalating over the Winter months and slowing down toward the year’s end.

This year we expect to see home sellers relax a little as rate rises begin to slow, and more properties start to come on the market. The longer term outlook for 2023 really depends on how many more rises are likely. However as inflation begins to come under control, rates are likely to slow and a pause is predicted within the first half of this year.?

Once this pause is announced, the effect will take some time to impact the property market so we could still see a further decline in prices until this occurs. The recent introduction of a stamp duty alternative for first home buyers has already begun to fuel the lower end of the market which will over time have an impact on higher priced properties. Following the rate pause announcement, property prices will likely stabilise for a period before we experience another upward trend. This could overall take a number of years.

If you decide to hold off and wait, then it will likely be another 2 years before we see any real uplift in prices. However with a pre-pandemic average annual growth rate of approx 7% for houses, if you wait a few years you may find you are only back to today’s levels as the recovery just begins. One thing is certain, we won’t see anywhere near the gains we’ve experienced over the last few years (which averaged around 15% pa).?

Since prices still have some way to go before hitting the bottom of the market, selling sooner rather than later might be a better option if you’re looking to downsize or upgrade. Selling now while stock levels are still in relatively short supply, will allow you to buy later in the year when prices are at their lowest and more properties are available. 2023 is predicted to be the year where we see an increase in mortgage distress as two thirds of those loans at record low rates will come off their fixed rate periods. This creates further opportunities to buy, albeit a very sad situation for many families who overpaid during the pandemic.

If you’re thinking of upsizing, it’s often the case that the upper end of the market experiences larger price declines and this time is no different with prices declining the fastest in the most expensive regions and property types which may work in your favour.

If you are thinking of selling and not sure whether the timing is right for you, feel free to book in a call with us. As your Vendor Advocate we provide advice on how to best prepare your home for sale, which agent will achieve the highest price and then work together with the agent to ensure your interests are protected and you are not pressured by the agent into underselling.

Our help costs you nothing extra, so you really have nothing to lose!

Find out more about our Vendor Advocate service?here?or book in a call with us?here?at a time that suits you.

Road Trip to QLD

I hope you had a wonderful time spent with family and friends over the Christmas/New Year holiday break! Spending quality time with family and creating life long memories is something we often don't have enough time for.

So this year I decided to take a longer than usual break from the office, got my kids off their devices and my husband doing what he loves most 4WDriving!

We went on a road trip to QLD stopping at various places including camping on Fraser Island which was a major highlight! This was my first time camping and although there were probably more variables than I would have liked - no running water or toilets, inquisitive dingoes, sharks, killer jelly fish, and even the occasional crocodile (luckily we did not encounter any!) it was an amazing experience.

Fraser Island is such a beautiful place and the camping aspect really connects you back to nature and my boys absolutely loved it! So much so they are already asking to go back again this year!

I thought I'd share some pics from our trip - I hope you enjoy them!

How was your break? Did you get away? I'd love to hear what you've been up to.

Regards

Kathryn

Spotlight on our Industry Partners

This month we shine the light on our Industry Partner - “MyPropertyPro”.

My PropertyPro is a full service buyer’s agency specialising in residential property acquisition in the Sutherland Shire. They exclusively and independently provide professional representation to buyers alone, correcting the imbalance in each and every property transaction where the vendor is usually represented by an agent, but the buyer is not.

MyPropertyPro will conduct the search, inspections, due diligence*, negotiation, purchase and settlement items on your behalf (and bid at auction if required). Using decades of professional knowledge, skill and experience, they reduce your risk, save you time, minimise your stress, and make sure you don’t overpay. Too often buyers miss out on property due to poor strategy, lack of experience, confidence and time, or simply not knowing what a property is worth. MyPropertyPro Buyer’s Agents will take care of all aspects of your purchase and ensure you get your weekends back!

*Due diligence provided via a proprietary and comprehensive due diligence report per property that is pursued.”

Visit their website to find out more HERE

How much will it cost to use a Vendor Advocate to sell my home?

People often ask us how it can be that our service costs nothing extra?

We address this FAQ in our latest video.

I love using the knowledge I've gained during my time as a real estate agent, to help others navigate the buying and selling process. If you'd like some expert advice from a property advocate who genuinely has your best interests at heart, I'd love to hear from you.

Find a suitable time to book a call via my?calendar.

Until next time...

Sincerely,

Kathryn ??