Is the market going down?
Not at all. In fact the latest trends are showing that Mildura is bucking the national trend and prices are still slightly rising, not falling like most capital cities. With a self sufficient economy we expect Mildura to be a buoyant and busy market in 2023
Will Mortgage Rates Hit 4%?
Although more rate rises are widely predicted in 2023 they are not expected to be of the magnitude the market saw last year and nor are there expected to be as many.
The hit to buyers from last year’s interest rate hikes was significant. For a mortgage of $500,000 the rate increases in 2022 added almost an extra $900 a month to repayments.
We can expect rate rises this year, but not as many as last year. It is believed the RBA is going to pause before we get to 4%.
Investors Return to Property Market in 2023
First home buyers are likely to return to the market first, buoyed by some of the first home buyer incentives currently available.
Once we see some certainty surrounding interest rates as mentioned and provided the cash rate does stabilize at the 4% mark, then we will see more first time buyers in the marketplace in 2023 and then followed by investors.
Higher rents and rental yields are likely to be inviting for investors.
Rents To Stabilise
Rental yields have risen dramatically over the past 12 to 18 months, and in the December quarter posted the steepest annual increase in rental prices, according to Domain, with rents rising 14.6% for houses and 17.6% for units.
The rental market ,when you look across the combined capitals, it has seen the longest continuous stretch of record price growth that we’ve ever seen.
We can expect rents to peak later this year.
Source: https://www.forbes.com/advisor/au/property/australian-property-market-forecast-2023/
