Despite the rate increases impacting the borrowing power of many homebuyers, national property prices are still expected to realise up to 5% growth by the end 2023.
PropTrack’s latest forecast said 2023’s overall price growth would range between 2% to 5%.
PropTrack director of economic research Cameron Kusher said this forecast builds on the performance of the housing market over the first half of the year when it hit 2.3% growth.
“The property market has seen a turnaround this year with six consecutive months of property price growth. Limited supply of available properties for sale was a key factor contributing to buyer competition and price growth,” he said.
“We saw price increases despite rising interest rates and reduced borrowing capacities and anticipate moderate price increases to continue over the coming months.”
According to PropTrack’s forecast, capital cities are expected to drive the growth, with their prices slated to increase between 3% and 6%.
Capital Cities Price Growth Forecast - 2023 |
|
|
Capital City |
Price Growth Outlook |
|
Sydney |
3% to 6% |
|
Melbourne |
-1% to 2% |
|
Brisbane |
1% to 4% |
|
Adelaide |
3% to 6% |
|
Perth |
4% to 7% |
|
Hobart |
-3% to -6% |
|
Darwin |
-3% to 0 |
|
Canberra |
0 to 3% |
Mr Kusher said the outlook for 2024 remains unclear given that a large group of fixed-rate borrowers’ mortgages are set to expire from their current interest rates in the lines of 2% to around 6%.
“Interest rate changes act with a lag, and as such, the possible impact of higher repayments on these borrowers won’t be seen until 2024 — at this stage, we are forecasting modest price growth in 2024.”
Sales and listing volumes affecting price growth
According to PropTrack, the take-up and supply of homes will influence how prices will move forward for the rest of the 2023.
Sales volumes in June 2023 were higher than any of the final six months of 2022 despite the 3.7% decline year-on-year.
In terms of supply, the total stock remains historically low — in June, the number of properties listed on PropTrack’s records are down 9.6% year-on-year.
The low supply of properties available for sale has contributed to the price rebound in 2023.
The number of incoming supply of properties in the market has also been trending lower since its peak in March 2022.
However, there are signs that sellers are likely to be preparing to list their properties. When a lift in new listings occur, the expected price increases could slow down slightly.
Buying a home or looking to refinance? The table below features home loans with some of the lowest interest rates on the market for owner occupiers.
| Lender | Home Loan | Interest Rate | Comparison Rate* | Monthly Repayment | Repayment type | Rate Type | Offset | Redraw | Ongoing Fees | Upfront Fees | Max LVR | Lump Sum Repayment | Additional Repayments | Split Loan Option | Tags | Features | Link | Compare | Promoted Product | Disclosure |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
6.04% p.a. | 6.06% p.a. | $3,011 | Principal & Interest | Variable | $0 | $530 | 90% | 4.6 STAR CUSTOMER RATINGS |
| Promoted | Disclosure | |||||||||
5.99% p.a. | 5.90% p.a. | $2,995 | Principal & Interest | Variable | $0 | $0 | 80% |
| Disclosure | |||||||||||
6.14% p.a. | 6.16% p.a. | $3,043 | Principal & Interest | Variable | $0 | $350 | 60% |
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