In your opinion, what will 2023 bring for Brisbane property market? In several areas, home investment property values in Brisbane have increased by 30% or more since 2021.
According to many buyers agency Brisbane perspective, the Brisbane real estate market recovered from the disastrous floods that hit the city in the first few months of 2022 and had a strong second half of the year.
Although Brisbane home prices have fallen since June, they are still 8.4 percent above their June 2017 lows.
What can we expect from Brisbane property market in the year 2023?
Even if the housing market in Brisbane has been cooling, can the $5 billion in infrastructure improvements set for the 2032 Olympics keep prices from plummeting? Also, how will the recent rate hikes affect the future of buying property in Brisbane?
Keep reading to learn about the present state of the Brisbane real estate market and our predictions for the next 12 months.
When Other Markets Cooling, Brisbane Property Market Was Just Heating Up.
But now, that was then. Home prices fell by 2.0% in October, the most of any capital city or state area. As of right moment, the value of a home is 6.2% lower than it was in June of this year, when it hit its all-time high.
However, numbers like these only provide a partial picture. When this market was at its peak, property prices climbed by about 43% in Brisbane property market, making it the fastest-growing real estate market in Australia.
Given the seven interest rate hikes in recent months and the strong inflation, a market correction seemed inevitable.
The real question that worries many Brisbane buyers agent and property buyers is that – where will the property market go from here?. Knowing the direction of the property market is very crucial to take decision and for buyers agency Brisbane to provide valuable advise to their clients. So, let’s dive further into the Brisbane property market right now.
Recent changes in Brisbane property market relative to the rest of Australia
In the three months leading up to October 2022, the property market in Australia as a whole fell by 4.1%. There was just a 0.1% difference in performance between rural areas and major cities.
As a capital city, Brisbane investment property prices fell by the most (2.4%), however this was still less than the falls in other major cities. With a 3.3% drop, Sydney was not far behind. The declines in home property prices in Canberra (-4.3%) and Hobart (-4.1%) were similar to the rest of the country.
Sales are often declining at this point
As consumer demand decreases, Australia’s sales volume is following suit. Comparing the last twelve months to the current one, national sales volumes are down 9.3 percent.
For the year ended in October, sales volumes in Brisbane were down 7.0%. Intriguingly though, in the quarter ending in September, Queensland had the highest sales volume of any state in the country.
Although this was still a fall of -10.9% from the previous quarter, it shows that Brisbane’s real estate market is holding up better than that of several other major cities. Perth buyers agent is a reliable Buyer Agent which you can trust blindly for any property deal
It’s taking longer to sell homes.
Properties are taking longer to sell on average compared to this time last year, which is another indicator that the real estate market is cooling.
It currently takes 36 days for property buyers to buy an Australian home, up from 20 days in the three months leading to November 2021.
The number of days it takes to sell a home in Brisbane has increased dramatically, from only an average of 14 in 2021 to 31 the following year. Not necessarily indicative of a dramatic decline in demand, but rather a return to more typical Brisbane investment property market circumstances after the unprecedented growth of year 2021.
An influx of new postings
The number of new home property postings has increased somewhat in the four weeks leading up to November 6. As the market goes through its seasonal adjustments, this is to be expected.
Overall, new listings in Australia are down -25.9%, and in Brisbane, they’re down -25.5%, compared to the same time last year.
As a result of the decline in new listings, the overall number of listings has remained relatively low. During the boom, there were fewer listings since homes were being purchased swiftly.
Less people are selling their homes now that the market has shifted and prices have dropped.
In 2023, what do you predict will happen to home prices in Brisbane?
Now let’s see what experts buyer’s agents anticipate may occur with property prices in 2023.
There’s something you need to know before we get started: Neither the general public nor experienced buyers agents or the regular Brisbane buyers agent and analysts can reliably predict the direction of future home market movements.
In early 2020, for instance, nearly everyone expected a severe downturn because of the pandemic. Estimates of a 20% or higher decline were floating about.
However, instead of a decline, we witnessed the third-fastest yearly price increase on record for the Brisbane property market. As a result, at Buyers Agency Brisbane, we think it’s best to view these predictions with some caution.
In 2023, will there be a real estate market crash?
Expect a lot of “doom and gloom” regarding the status of the real estate market in the media during the next few months. The more people who see their content, the more money they make, so it’s in their best interest to stir up as much excitement as possible.
Neither the truth nor probability is of much importance to them. All that matters to them is catching your eye.
From December 2017 to June 2019, the Australian property market saw its greatest fall ever, yet it was still just 9.9 percent.
The Brisbane property market downturn occurred at a bad moment, but there were valid reasons behind it. There was a credit crisis that made it difficult for purchasers to secure loans, and in 2019 there were proposals to modify negative gearing, both of which dampened investor enthusiasm.
But from our currently analysis at buyers agency Brisbane; our economy and the real estate market are both healthy, so there’s no reason to expect a massive meltdown. Not a crash, but a correction is what we’re experiencing in the investment property market right now.
Expanding economy
The economy also has a significant role in determining the level of interest in purchasing a home. If the economy is expanding, then more employment will be created.
More individuals will move to South East Queensland if there are more employment available. And with more positions being available, comes more pay.
If there are more individuals looking for work than there are available positions, wages will rise as businesses compete for workers.
There are two ways in which a flourishing economy influences the demand for homes. A greater salary means more disposable income, which means more savings and more borrowing power. What this means is that there will be a rise in the number of persons in the market for a new residence.
The economic indicators for property purchase in Brisbane are all trending in the correct way. The Brisbane City Council Economic Development plan 2012-2031 predicts the city’s economy will be valued more than $217 billion by the end of the forecast period.
Conclusion
To know the best timing for the right property investment, and when to take the best opportunity in property purchase, our buyer’s agent recommends that you pursue the right buying process for your dream property. Deal with the best buyers agency Brisbane for the best results.
At buyers agency Australia, we always have the interest of our clients at the centre of our operations. Working with our experts at Buyers Agency Brisbane, you can be rest assured you are getting the best deals.