Since May 2022, we have had 12 interest rate increases from the Reserve Bank of Australia, which have seen official rates rise by 4% over the last 12 months. Despite all this, housing prices have not only stopped falling, but they have been on the rise for consecutive months, especially this year.

Inflation has now peaked and so have interest rates, so our consumer’s confidence seems to have returned and the property market will be most likely to continue their upward trajectory.  The number of listings available has dropped significantly, which helped increase the competition in each home and hence push the property price up as well.

Net overseas migration is forecast to reach 400,000 this year meaning we need more homes. This increasing population growth and supply of housing to market will have a significant impact on property values.

The real estate market is doing what it always does, it is working its way through the market cycle driven by multiple factors such as interest rates, consumer confidence, increasing immigration population, supply and demand, and our overall economic conditions.

So, 2023 is the year the property market resets, and a new cycle begins.