Navigating the 2023 Housing Market: Positive Outlook with Challenges and Opportunities

Navigating the 2023 Housing Market: Positive Outlook with Challenges and Opportunities

The residential property market has seen its fair share of ups and downs in recent years, with fluctuating prices and ever-changing market conditions.

However, as we navigate 2023, the market is showing some promising signs of improvement, with a number of factors suggesting a positive outlook for the near future.

Market Showing Signs of Improvement

There are several positive indicators that the housing market is improving. For one, there have been fewer corrections, with the February house value index (HVI) figures rising and March figures also showing improvement. Additionally, auction clearance rates in NSW have been strong. Another positive sign is that interest rate rises are coming to an end, which could help boost the market further.

Lack of Stock

One of the biggest challenges facing the housing market right now is a lack of stock. Development application numbers are down, and project start dates are also lagging therefore taking longer to catch up to market demand. In fact, listings were down more than 20% in March compared to the average, which indicates a huge gap in supply versus demand with an increase in immigration pushing demand to an even higher level.

Investors Encouraged

Despite the challenges posed by the current market, there are still reasons for investors to be entering the market now. Vacancy rates in the Illawarra area, for example, are currently low, hovering around 1%. This suggests a strong demand for rental properties in the area. In addition, minimum periods for finding new tenants are relatively short, which is another positive sign for investors. Investors are also expected to re-enter the market strongly over the next 12-15 months when prices start to increase, and capital gains return.

Rising Building Costs

One challenge that buyers and investors need to be aware of is the rising cost of building. Some builders are quoting 30%-40% increases in materials over the past two years. This should encourage buyers to jump on existing stock as any "new" development has to consider this substantial increase in building costs which ultimately will be built into the selling price. Getting in first to any release is key for getting the most affordable price of any upcoming development as price rises throughout the selling period of a project is likely to occur due to the 1 – 2 year construction period.

Enter the Market with Confidence

Despite these challenges, the Commissioner is focused on improving the industry, which should give buyers and investors’ confidence. It's essential to ask yourself whether the property will be worth more or less when the project is complete from the time of purchase. A firm start date is also important, and it's crucial to pick the right developer builder. Research is key to finding the right person or company to trust with your future property asset.

In conclusion, the housing market is showing signs of improvement and gives reason for optimism. Staying informed and attuned to the market's fluctuations is crucial, as it instils confidence when entering the market.

With meticulous research and thoughtful planning, investors and buyers can capitalise on the available opportunities. Early entry ensures maximum returns as the development progresses and its value grows closer to completion.

Buying Real Estate Selling Real Estate Commercial Real Estate Investing in Real Estate Real Estate News Awards Residential Real Estate Commercial Property Auction Renting Selling Sydney Office Leasing First Home Buyers Hints & Tips Renting Real Estate Office Leasing Pets Wollongong Illawarra Lease Wrap Retail Property Childcare Childcare Investments WA MMJ News Awards & Recognition Green Buildings Portfolio Managemnt Track Record Investment Investment Property Buying Buying Northern Suburbs Commercial Centres Community Charity MMJ Team Pricing Indicators Pricing Attracting Buyers Interest Rates Events Office Fit-Out Interior Design Leasing Commercial Leasing Tenants Landlords Finances Market Conditions Trends Offices Property Styling Property Investing Business Sales Research Property Management #realinvestor government Government Grants Renting Property Selling Guide Sixty Years MMJ Teams COVID-19 Town Planning Property Development Project Marketing Advisory rent rent Valuation Development Real Estate Next Move Developers New Appointment Melbourne Real Estate MMJ Family Asset Services NSW Child Care Investments Child Care Perth Real Estate Asset Management active apartment penthouse Employee Sydney Real Estate Wollongong Real Estate Legislation Industrial Empowered Stars Of Wollongong Business Sales Team Business Spotlight rental property MMJ Nowra 2023 Housing Market Auction Clearance Rates Residential Sales Town Planning & Advisory Industry Change Laws Commercial Sales Commercial Management Residential Management MMJ Wollongong MMJ Central Coast Strata Issue 8 Hysata Sicona History Conveyancer Solicitor Commercial Market Update Commercial Asset Management Making A Difference Types of Buyers 2024 Listing Your Home Smoke Alarms Issue 9 Escabags BubbleBerry Rental MODCO Property Market