Your Property News January 2023

As we speed into 2023, we have all set some (or many) goals which we wish to achieve this year. Have you set any property goals? If so, what are your 2023 property goals?

Yes – there has been a lot of negative press in relation to property and property prices heading for a cliff. Yes – interest rates have risen with potentially further rate rises to come. Yes – we have seen the fastest increase in rate hikes over the last 9 months. And yes, we have enjoyed the lowest interest rates for a number of years. Looking at the December cash rate every 5 years over the last 25 years it certainly tells a story.

2022 2017 2012 2007 2002 1997
3.1% 1.5% 3% 6.75% 4.75% 5%

Reflecting the reduction in the cash rate and our need to be home, Brisbane’s house prices saw the steepest annual climb in 13 years in 2021. Our last property surge was in 2007/2008 when the cash rate sat at 6.75%.

Property prices have started to meet peoples lending ability. As of November, the median price for houses in Brisbane saw a 2.2% decline month-on-month and a 6.2% decline quarter-on-quarter. Brisbane’s house prices are 8% higher year-on-year.

Michael Yardney astutely summarises the Brisbane market in his December 17 newsletter – Digging deeper into the stats some properties have far outperformed others and freestanding Brisbane houses within 5-7 km of the CBD or in good school catchment zones have grown in value strongly. It’s really a tale of two cities – while some properties over perform, others underperform.

He summarises the 2023 property outlook – Currently, due to a short supply of A-grade homes and investment-grade properties, and a surplus of buyers, quality property is a seller’s market where asking prices could just keep rising.

Not only have certain locations grown in value, but Brisbane has also seen a distinct outperformance of house values relative to units.

The bottom line is that for those with a secure job and who have their finances under control, now is still a great time to buy into the Brisbane housing market.

If one of your property goals for 2023 is to upsize, downsize, invest, or enjoy an easier lifestyle, please reach out. We are partnering with a number of sellers seeking to achieve their property goals in 2023. For a discrete discussion, let’s talk.

Amanda
Amanda Butler – Principal
0438 767 439

In our Clients words

Excellent – Amanda is fabulous, highly recommend Butler+Co to everyone. Nothing was too much trouble and the communication was excellent. All other staff were super as well.

J – Hamilton