Australian Property Talk - What will happen to Interest Rates in 2023?

What will happen to Interest Rates in 2023?

01/03/23 • 45 min

Where interest rates go this year will likely be the number 1 driver for property prices in Australia in 2023. It is the number 1 question we're getting asked at the moment.
In the first episode of 2023, we run through the four possible scenarios for interest rates for 2023. At the end of the episode, we discuss what impact each of these scenarios will have on property prices.
The four scenarios are:
1. The RBA pause at 3.10% and stop raising rates
2. They have two-three more rate rises and peak at 3.60-3.85%.
3. There is a 1%+ increase in interest rates in 2023 and the cash rate goes well past 4%.
4. The RBA cuts interest rates later in 2023.

Reach out to us at www.australianpropertytalk.com.au

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Reach out to us at www.australianpropertytalk.com.au

Previous Episode

Inflation: How it Drives Property Prices & Your Investment Returns

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A debate between two ex-treasury economists on where inflation will be in the long term. On one hand, Redom debates inflation will be low again once this period subsides. On the flipside, Curtis debates that inflation will be structurally higher in the long term.
INFLATION has taken hold in Australia and much of the developed world. Finally, after being a sleeping dragon for decades, inflation woken up breathed fire to the global economy causing massive disruption to property prices.
But what is inflation?
What is happening to inflation at the moment?
What will happen to inflation in the medium term?
And most importantly, what impact does inflation have on property prices?
What happens to inflation over not only the short term, but the long term is absolutely KEY. Inflation will be the main driver of capital growth rates into the future, and hence its WORTH having some understanding and views of inflation rates when deciding to invest in real estate.

Reach out to us at www.australianpropertytalk.com.au

Next Episode

2023 = The Tightest Financial Conditions For Aussie Property in a Decade

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Property market conditions are a function of the financial conditions that are in place for borrowers across Australia.

When banks give you more money and make it cheaper, property booms. When they take it away or make it more expensive, property performs poorly.

In this episode, were going to drill down into the detail of current financial conditions and benchmark lending conditions on four key metrics:

1. Interest rates – how much debt costs

2. Borrowing capacity – how much debt you can get

3. Credit policies – how easily banks are providing debt

4. Competitiveness – how many options you have
Understanding lending conditions is key to working out what may happen to property markets in 2023.

Reach out to us at www.australianpropertytalk.com.au

Australian Property Talk - What will happen to Interest Rates in 2023?

Transcript

2023. 1st question of the year what will happen to interest rates this year? The answer to this will most likely be the number one driver for most property markets in 2023. The cost of credit is key to property valuations and demand for housing. With massive changes to interest rates already, most economists predict that most of the rate changes have already occurred. And we will live through this higher interest rate setting in 2023 and beyond. The 300 BIP increase in interest rates precipita