2022

The year in review

After recording a 27.7% rise in housing values between October 2020 and January 2022, Sydney home values are down -11.4% since peaking and the Peninsula was not immune to this change. The following pages contain some interesting suburb statistics for our core market area.

The tail end of COVID’s social effects, widespread floods, the Ukraine War, a Federal election were all contributing factors - but with out a doubt the single most important factor was the Reserve Banks sudden increases in interest rates.

Late 2022 has seen some green shoots - buyer activity at open homes has improved, sales are being made - and there is a strong underlying sentiment that we may be at or near the bottom of price corrections locally.

So what does 2023 hold for residential property?

The big 4 banks are now predicting the possibility of one more rate rise early in the year - then a ‘steady as she goes’ approach before rates possibly going down as early as late 2023.

What’s in store 2023

The long-term fundamentals remain strong. Population growth is assured with a doubling of Sydney population by mid-century (overseas migration is already ramping up); unemployment remains historically low at around 3.4%, and there are recent numbers suggesting that inflation is beginning to flatten out and decline.

There is a feeling that there is a window of opportunity to get into the property market before the overall market picks up again. Rather than trying to pick where we are at in ’the cycle’, if your income is secure and the time is right for you, take a longer term view. This may be an ideal time to get a foothold in the Northern Beaches property market while others are sitting on the sidelines. DISCLAIMER: All information contained in this report has either been provided to us by a third-party, or otherwise and we have no reason to doubt it’s accuracy but do not take any responsibility for it. All interested parties should rely upon their own inquiries as to whether or not this information is accurate.