SEA Newsletter Christmas Edition 2023

After an unusual and prices sea soaring year with interest rates, CPI pressures, European unrest the market actually remain somewhat resilent. Against most economic odds the stock market, currency and employment stayed the course. 

The current level of interest rates is poised at a likely turning point, especially after Christmas holidays and the natural spend a family goes through at this time of year. November, again, did see the natural decline of sales and listings in the beaches, but word on the street and speaking with other Principals is that there is a large increase of stock to hit the market come late Jan and Feb 2024. 

Signing up to sell now for next year seems to be avid and already we note there are 28 listed in the area to be revealed in 2024. 

The factors for 2024 to be market movers:

* February RBA meeting held on Tuesday 6th February. Majority of ecomonists estimate another rise in rates

* CPI data release 31 January

* Change of immigration numbers date to be advised

* Oil and Petrol is one to watch as the USA and Europe enters into their winter period and use becomes high

* GOLD has recently spiked, which is previously been an early warning sign for flight to quality measures amongst traders. Spot gold now over $2,000 an Oz USD.

Capital Growths for 2023

FRESHWATER Median House $3,525,000 – 8.8% ( $3,865,000 in 2022)

FRESHWATER Median Unit  $1,000,000 -11.1% ( $1,125,000 in 2022)

CURL CURL Median House $3,955,000 + 3.4% ( $3,825,000 in 2022)

CURL CURL Median Unit  No Value ($1,540,000 in 2022 – 3.7%)

QUEENSCLIFF Median House $2,932,500 – 25.8% ( $3,950,500 in 2022)

QUEENSCLIFF Median Unit $1,287,500 – 20.0% ( $1,610,000 in 2022)

NORTH MANLY Median House $2,850,000 – 2.7% ( $2,930,000 in 2022)

NORTH MANLY Median Unit $1,095,000 – 14.5% ( $1,280,000 in 2022)

NORTH CURL CURL Median House $3,150,000 – 10.0% ( $3,500,000 in 2022)

NORTH CURL CURL Median Unit No Value ( $1,202,000 in 2022)

The overall summary is we expect large VOLUMES of property for the first time in many years to go on the market. This increase in stock levels will initially create massive choice for consumers and will encourage further transactions of those whom own property yet were retiscent in selling until the right property came up. 

For every ACTION there is a REACTION

Majority of predictions indicate are swinging range of -4.0% to + 5.0% throughout the year. As mentioned, rates will be the key to whether some can hold or not. With increased stock levels comes competition. With buyers having a wider selection of property, agents and owners will definitely need to make sure their properties are in tip top condition and preparation is the key.

INVESTORS/LANDLORDS:

With every market change in price, the belated change occurs in the rental market. This lag seems to be, on average, approx 6-8 months. Mostly this is due to lease durations and now with the forecast, higher sale turnover will allow more choice as investors view rates may be at their highest, and the future prospect that rates will adjust downwards, could see a speculation that investors can jump back in.