The latest PropTrack data this month shows the market downturn is losing momentum, with the overall national home prices rising by 0.18% in February caused by tight supply and continued buyer demand.
However, according to Realestate.com.au Senior Economist Eleanor Creagh, this may not be the end of the downturn just yet. She says that ‘with additional rate rises expected, borrowing costs will continue to increase and borrowing capacities will be further reduced, weighing on prices’.
CoreLogic’s data shows the ‘fixed-rate cliff’ will be felt most severely from April 2023. The Head of Residential Research, Eliza Owens, says that the cliff may pose ‘one of the biggest potential risks to housing market values’ in 2023.
Realestate.com.au data shows that despite the media’s reports of property doom and gloom and the market downturn, buyer demand is 64% higher across all capitals than it was pre-pandemic. According to Westpac Senior Economist Pat Bustamante, tight vacancy rates and growing demand will push the rental market – expected to spike another 11.5% this year – into a crisis not seen in any previous cycles.
Download and read the full Market Essentials – March 2023 Report.