What you can expect for 2023.
We are coming towards the end of the year. So, what is happening right now and what can you expect for the next couple of months and into 2023?
The question that keeps popping up is the effect of the interest rate rises that we have experienced over the last couple of months. I believe we are going to receive another interest rate rise, but I actually don’t think, it’s going to make much of a difference. This is why.
- The property prices has gone up since January and though they have taken a small step backwards in the past quarter but less than a percent.
What I am experiencing when selling homes and talking to buyers is that they’re still out there in force. They are still heaps of people looking to buy, but when there used to be maybe six offers on a property you might only looking at four or five now. So, it’s still a sellers market. Interesting enough, there’s a lot of investors buying, and some of them are interstate or overseas. And in the last couple of months, we’ve received a number of offers on properties from interstate and overseas purchases. They love Perth because the rental return is really strong and the median house price is the lowest of any of the capital cities.
2) The first home buyers who are also very active in the market, are now getting competition from the investors. The first home buyers are active because they can’t find a rental. And if they find a rental, the rent is pretty high. In some cases, getting a mortgage is actually cheaper than renting. So, the market is strong from a seller’s point of view, and we are 30% under a balanced market.
So, who’s selling now?
There are a lot of investors who are starting to sell their investment properties. They’re cashing in on their asset. They’re doing that because even though the rental market is good, the selling market is even better, because there’s hardly anything for sale. And quite often we receive multiple offers on properties. Another reason why a lot of investors are coming to me to sell their properties is because their fixed interest rate is about to go up. So, in some cases, they’re looking at having to pay the double the amount. The other market that is still very strong is your family homes. People trade up, people are downsizing, and that’s never gonna change. Some people, unfortunately are getting divorced.
The market right now is as strong as it was earlier the year. We have seen, price increases throughout the year. So, early 2023 looks like a good time to list your property for sale and cash in. As always, the value of your home depends on a number of factors, What the condition it is in, the location, the size.
If you’d like to know what your property might be worth in the current market or even your investment property is worth in the current market, do get in touch.