Australia’s housing market has been on a roller coaster ride since the pandemic first arrived in early 2020. In the beginning, it fell significantly as a result of the uncertainty surrounding how the pandemic would affect society generally and the economy.
Sydney’s median house price has soared by around 550% from 1993 to 2022—a staggering increase. But raw numbers don’t tell the full story. What we’re selling today is vastly different from 30 years ago.
A number of suburbs across the country reported billion-dollar sales in 2022, despite a slowdown in the residential property market caused by rate hikes.
My predictions are that the property market will vary from one area to another. The high-end market has the greatest wealth, so I anticipate there will be a shortage of stock and little price movement.
The RBA estimates that more than 50% of households with a fixed-rate mortgage expiring in 2023 will face a 40 percent or greater increase in mortgage payments.
There were fewer transactions in the Sydney property market in 2022, after the boom of 2021, due to rising interest rates and reduced buyer sentiment. We noticed that many people were sitting on the sidelines, waiting for the market to turn, due to low volume levels and low buyer demand.
House prices in Sydney’s Dover Heights are moderately stabilizing after two years of rapid growth, making it one of the top 10 most expensive suburbs. There were only 28 properties sold in 2022, totalling $213,500,000 in gross sales.
Real estate is among the most sensitive sectors of the economy to interest rates. For instance, in 2022 we experienced eight consecutive increases to combat inflation, which still impacted home prices in Australia.
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