Your Property News November 2023

The clear property picture both from a buying and a rental perspective is that supply shortages have become the strongest market driver. Lack of or a shortage of supply has ensured a strong property market in 2023.

“The housing market behaved quite the opposite way from the market expectations in the midst of high inflation and high mortgage rates. Instead of the much-anticipated downturn caused by high cost of living and high mortgage repayments, house prices continue to perform strongly – consistently registering positive growth since the beginning of 2023“, states Dr Peng Yew Wong, a senior lecturer at RMIT’s School of Property, Construction and Project Management.

Will prices stay firm beyond 2023?

“House prices shall continue to go from strength to strength into 2024–25 in the midst of high inflationary pressure, due mainly to the housing supply shortage,” Dr Wong states.

At a recent investment conference, Bernard Salt, Demographer, highlighted that the 37-47 age group are on the move – moving from the inner city to the middle to outer suburbs. Approximately 5 million are on the move trading in their apartments for space.

With rising house prices and rental shortage, have we seen a shift from ownership to renting?
According to Mr Salt, in 1966 we had the highest level of home ownership at 73%. In 2021, 63% owned a home with the majority entering home ownership at the age of 32. To add context, the Australian population has increased by 7 million people since 2000. This does not take account our recent surge in immigration.

Our local market has regained 2022’s price falls and has increased by 0.52% in October to hit a new price peak. Prices are now 7.36% above their level compared to this time last year and up 6.46% year-to-date after increasing for ten straight months, according to PropTech.

At Butler+Co, we have had the pleasure of welcoming new owners to a number of our properties during October. New homes await for our sellers, with one long term owner saying goodbye to their home of 55 years.

Is it time for your next move? Use our experience and expertise in the local market to guide you out of your current home and into your new home.

Butler+Co is your trusted and experienced property specialist.

Amanda Butler – Principal – 0438 767 439 – [email protected]

In our Clients words

Highly recommend. Amanda is an experienced agent whose knowledge and professionalism enabled a smooth efficient sale. Intelligent, open and regular communication put us at ease throughout!

Helen, Wooloowin