2022 saw Sydney’s property market change quite dramatically compared to the year prior when property prices had spiked. Increased interest rates which continued to rise most months throughout the year as well as inflation forced many homeowners to make the decision to stay put for a while. Many buyers now didn’t have the same borrowing capacity they had 12 months ago due to interest rates so property prices declined.
Considering we have already experienced the decline of property prices, experts predict that 2023 could be a great year to sell your home and achieve a great price.
Stamp Duty Reforms
From the 16th of January 2023, first home buyers purchasing their first home will now be able to choose between paying an annual land tax or an upfront stamp duty. The legislation covers all new and existing homes valued up to $1.5 million. This is a very exciting step forward which will positively impact a large portion of Sydney’s first home buyers.
An increase in buyers ultimately means an increase in competition and will drive up property prices, which is great news for sellers.
Flow on effect to higher valued homes
Experts predict that with properties up to the $1.5 million mark increasing in value due to the stamp duty reforms, that it will have a ripple effect on properties in the higher price brackets as well. It is hoped that by mid to end 2023 that all property ranges will have increased in value due to buyer demand.
Limited supply and slowdown in interest rates
Many mortgage holders have felt the brunt of interest rates through out the year and are holding onto the hope that come 2023 they will ease and plateau out. Experts predict there may be a few more rate hikes in the new year but then should taper off easing the financial stress on many mortgage holders.
Limited supply but an increase in buyers will help to drive property prices back up. Interestingly the parts of Sydney that felt the downturn the most, were typically those areas that experienced the biggest gains during the pandemic.
With the worst of the interest rate rises behind us, 2023 could see Sydney begin it’s recovery phase of the cycle. If you’re thinking of selling in 2023 and ready to start planning, we’re here and ready to assist you.
