The path the Reserve Bank of Australia (RBA) take with interest rates in 2023 will determine the outcome for the Sydney Property Market in 2023. The RBA are already on the record warning of rate hikes early in the year. SQM Research’s Louis Christopher recently joined us to dissect the 2023 market and offer his forecasts for the year.
In this interview, Louis outlines how the market will perform under 4 given scenarios.
If the RBA run soft on rate hikes, Louis believes that rising wages, increasing rental returns and a desire to be in hard assets rather than cash, will cause the property market to rise by year’s end. However, if the rent persist with aggressive rate rises as they did in 2022, then the market is set for tough times.
There is a point with mortgage rates that households will struggle to meet their debt obligations and the RBA will be doing everything they can to avoid a hard landing for the economy and property prices. The cause of the current inflation outbreak is global and will therefore the RBA will face global inflation in 2023.
All these issues and more a discussed in our January 2023 edition of Talking Property.
