Market uncertainty to DRIVE HOUSE PRICES IN 2023

According to the Real Estate Institute of Victoria’s (REIV) December Quarterly

Median Report, the median house price in Seymour is $419,000 which represents a 7.4% reduction in house prices compared to the previous quarter.

After the galloping property market of recent past, homeowners might be feeling a little overwhelmed in 2023. Last year, one factor drove the real estate market more than any other: rising mortgage rates.

The Reserve Bank began a series of interest rate hikes in an effort to put the brakes on inflation.

The housing market reacted accordingly with both demand and price growth weakening.

This year’s market could become a ‘noones’ market, not friendly to buyers or sellers with the primary challenge for homebuyers shifting from availability to affordability.

Despite this, property in regional Victoria continues to perform strongly.

REIV’s December report reveals that regional Victorian house prices grew 8.0 per cent across 2022 to $610,000 while the annual median for units and apartments rose 6.5 per cent to $425,000.

The standout regional suburbs for quarterly growth were Kyneton which added an impressive $100,000 to its median house price (topping out at $1,040,000) and Stawell, growing 8.7 per cent this quarter and 21 per cent annually to $375,000.

REIV president, Andrew Meehan, said the December data demonstrates good buying opportunities for Victorians and a resilient real estate market across the state.

“As we enter 2023 and immigration levels return we will no doubt see continuous demand in the market as

Melbourne’s population grows and investors see strong potential for growth in our state,” he said.

Many economists expect the number of home sales to continue to decline this year, leading to an increase in listing inventory and longer days-on-market.

While some commentators expect house prices to fall this year, many predict prices to remain fairly stable because for most parts of the country available inventory remains low.

VACANT LAND