Property Prices: This 2023 Prediction Scares Me

People come up to me all the time and tell me with great authority exactly what property prices are going to do in 2023… and that scares me.

Because if you could accurately predict the ups and downs of the property market and time it perfectly, you probably wouldn’t be reading this article… you’d be a multi-millionaire sitting on your mega yacht likely somewhere in the Caribbean.

So clearly… those people are guessing at best and at worst, extolling false information.

For the rest of us mere mortals that haven’t got a crystal ball (and don’t pretend to know the future), I have two Golden Rules:

That’s what home ownership and investing is all about when it comes to property. If you hold for the long term, those properties just keep rising in value. Plus if it’s an investment, you don’t pay tax until the day you sell it.

Sure, many of the banks are predicting the market to fall this year and interest rates to rise, but since when have the banks got their predictions right? They certainly haven’t over the last few years.

Where are the people who were predicting 50% market falls when the pandemic hit? People who purchased Blue Chip property at the start of 2020 are still laughing despite the recent market softening.

But for those of you who are still slightly nervous about the current market, remember that if you do wait, sure property prices might fall slightly, but if interest rates do continue to rise you’ll be able to afford less (due to their serviceability constraints) and so you’ll probably still struggle to buy the property you really want.

Some of the research houses such as SQM Research are predicting property prices increase this year and as much as 5 – 10%+ in some areas based on inflation peaking with the next 1 – 2 rises followed by some rate falls.

There’s plenty of people that miss-timed the last upswing and missed out. They are still cashed up and ready to go, many buying now.

Remember back to your school day economics of supply and demand?

"If you buy when no one else is buying, you get to buy a better property in a better location for a cheaper price." - Chris Gray

Wait until the market “improves” and it will take you longer to find a worse property in a worse location for a higher price, as the market is flooded with other buyers.

What would you prefer?

It sounds simple and it is. I’ve been investing in property in multiple countries for 30 years and I’ve hosted around 400+ TV shows on Sky News Business, interviewing some of the best experts in the country and the best advice I’ve heard time and time again is:

If there’s a limited supply and there’s plenty of demand from people who have money, prices will rise over the long term.

So, no matter whether you’re looking for a home, investment or a holiday home, no matter whether you’re rich or poor, high income or low income, young or old, you’re generally always better off buying now rather than later.

Make sure you pay to get some independent advice specific to you, to make sure you can afford it and can afford to hold on no matter what the economy might swing at you.

I’m yet to find anyone that really regretted making a decision to buy Blue Chip property. However, I’ve heard thousands of stories of people that wished they did buy earlier.

If you need help from me and the team, no problems. Click here to book a time for a chat.

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