As you know I don’t have a crystal ball but in my opinion here are my predictions for the property market in the Sutherland Shire at the start of 2023.
What we do know is there are several factors impacting the property market right now:
- Interest Rate Rises
- Overall Increase Living Costs
- Cost of Building Materials
- Lack of Tradespeople
By the close of 2022 we saw the RBA lift the official cash rate eight consecutive times between May and December, taking it from 0.1% to 3.1%. Banks followed suit and increased their rates. No doubt in February the RBA will lift the official cash rate once again and perhaps a couple more times to follow that.
I believe early 2023 we will start to see some people face challenges with paying off their mortgages.
Those that have overstretched themselves will start to panic and more selling stock will come to market. Some people will come off their super low fixed mortgages and have no option but to sell.
As you know with more stock on the market prices will start to level out. I feel we are very close to the bottom of the market in our area. A plateau of price will not be far away.
Many people have been holding off buying or selling until they know where the RBA lands with the official cash rate, So when rate rises stabilise and people have greater certainty over their budgeting, we should see more activity in the property market.
Like anything, if you are a seller it is all relative, yes you are going to sell your home cheaper than what you could have a year ago, but you are also going to buy cheaper than back then.
We also expect that the rising construction costs and longer timelines on trades will encourage more people weighing up renovating vs buying to make a move.
Right now we are seeing that buyers like the move straight in houses and they are prepared to pay good money for them. Properties that are original or need renovating buyers are very cautious with price as they know how much things cost to renovate.
We are still seeing good movement of out of area buyers particularly from Eastern Suburbs, Inner West & North Shore wanting to move to The Shire this is great for our prices.
What I am finding is properties are staying on the market a little longer as buyers are coming back for 2 – 3 inspections of the property before they put forward offers. Don’t be alarmed if your property is on the market for 6-8 weeks. Finding the right buyer with the right offer is the most important.
Overall The Sutherland Shire Property Market will never crash. There are always people that need to sell and there are always buyers that need to buy in this beautiful location.
Keeping Real Estate……. Real
Katrina Wright JP
Principal/Licensed Real Estate Agent
Katrina Wright – Property Excellence
M 0400 748 638