Where is the Australian property market headed? What you need to know!

One of the most important things you must always remember is that interest rates are just one of many factors affecting home prices.

For a property market to crash there must be a large number of sellers who simply have no other choice but to sell their property and there are no buyers who are wanting to purchase that property. This will lead to the seller having to offer large price reductions in order to entice the buyers.

Another thing to remember is that sellers, often as soon as they sell, or during the selling the process, also become buyers themselves. Sellers also have to live somewhere, and the only reason they are forced to sell their home would be if they were unable to meet their mortgage payments.

The question on everyone’s mind is “What is outlook of the Australian property market in 2023 and beyond?”

Housing markets have started to transition from the “once-in-a-generation property boom” during 2020 to 2021 to the adjustment phase of the property cycle.

The Australia’s property market moves in cycles. In addition, each state and territory has its own property cycle, and there are further cycles within each, depending on the area, price point, and the property type.

“Historically, cycles start with a period of rising values, followed by a lull period where prices stagnate or even decline, before starting to increase again.”

Our research and experience tell us that property cycles last seven to 10 years, however, the length of an individual cycle varies depending on a combination of economic factors as well as supply and demand, rather than a period of time.

While overall the Australian property market is currently in a downturn, not all the property markets across Australia are being impacted equally.

Further, within each capital city there are multiple markets with property values still rising in some locations while others are stagnant or falling.

At Grit Property Group, we will manage the whole investment process for you in-house. So, contact the property investment experts at Grit Property Group and see how we can assist you in earning the best return for your investment.

Don’t wait to buy property! Contact us today!

www.gritproperty.com.au