REIP Inside Real Estate – 19th April 2023

For the first time in a long time, we saw a rise in the market with a 6% uplift in March. Sydney led the way in our capital cities with a 1.4% gain.

However, while it’s great to see some positive news, we should still expect to see a slowdown.

Interest rates and the ongoing cost of living crunch are likely to continue to put pressure on house prices for some time.

To demonstrate this slowdown, a recent report by REIP Nexus shows that in Victoria, Q1 sales volumes were down by 20% compared to the same period last year. However, auctions appear to continue to yield better sales outcomes for owners, even in a slow market. For more, see the blog.

I don’t think I’ve spoken to any agent recently who isn’t experiencing issues with stock levels, but even with less stock, sale prices are remaining subdued.

Another interesting trend we’re seeing more of is how our immigrants are managing the housing situation. Rather than renting first as is common practice, many more are purchasing instead, highlighting the incredibly tight rental conditions we are still seeing across the country.

I would anticipate that there are still some renters who are unable to find a property and may be on the hunt for reasonably priced homes. However, the question is with our interest rates and cost of living at an all-time high, will they have the required deposit or qualify for the home loan they want?

As the saying goes ‘this too shall pass’. Let’s hope we start to see some change over the coming months so we can return to something that resembles normal.

Stay connected,

Sadhana Smiles
CEO, Real Estate Industry Partners