The outlook for real estate in 2023

By Ian Pepper, a finance and real estate professional at Ray White Helensburgh

The first weekend of scheduled open homes looks set to commence this Saturday, 14 January after a quiet Christmas and New Year period, when buyers' focus was elsewhere. A lot of stock remains on the market from 2022 and many high-end properties are taking more than 180 days to sell. It seems sellers’ expectations were set at the peak and are not adjusting to the new market.

There has been a lot of analysis and reports produced by the media speculating on what might be in store for 2023 real estate. The consensus seems to be as follows:

• Interest rates to creep up another 0.5% over the next few months and then paused to assess the impacts of the steepest rise in rates in a generation
• First few months of 2023 will be slow and prices will be under pressure, Sydney is expected to drop another 8% following the decline of 13% in 2022
• Market sentiment to return once interest rates have peaked
• Chinese buyers set to return mid-way through 2023 after a three-year absence

Overall, if a seller is trading up or down then they are generally indifferent to the price outlook. However, if a seller is looking to cash in on their capital gains, then it may be advisable to wait a few months.

There were a few late notable sales in December 2022 (see below), however, none yet for 2023:

13 Boyce Ave, Austinmer sold for $2,400,000 by Andrew Hedley at One Agency Thirroul

4/126 Parkes St. Helensburgh sold for $795,000 by Elle Ritson at Ray White Helensburgh

2/5 High St, Helensburgh sold for $865,000 by Chris Kissell at Ray White Helensburgh

14 Vardy Court, Helensburgh sold for $1,150,000 by Mattias Samuelsson at Ray White Helensburgh