Expect a lot of speculation on one further rate rise in February and even possibly the following review. The RBA will certainly be keen to keep speculation active, as they want consumers to remain cautious with their spending. But it is now quite unlikely that there will be more increases. Likewise, it is unlikely that rates will start dropping until the end of 2024 at least. Inflation is dropping fairly quickly but not so fast as to leave economists and the RBA satisfied. But fast enough that increasing rates again will come across as heartless and unnecessary, given the general financial pressures currently being felt amongst consumers.
Melbourne property is also likely to have a quiet year; firstly, with a strong chance of a dip in prices and then a modest recovery once all the talk turns to rate cuts in the second half of the year. Buyers are now willing to wait for the right property (or the right price). And sufficient sellers are now in the market to provide choice. (Should sellers start to withhold properties again, there would be a repeat of 2021, where lack of supply caused an unexpected rise in prices when supply and demand got out of balance). So, currently not a Sellers’ market anymore, nor a Buyers’ market; a Balanced market, where properties will sell if they are priced correctly. So, a small drop and then a small recovery is likely. Every chance it will finish close to where it started.
Two qualifications. This expectation is based on no Black Swan (unexpected or unforeseeable) world events, nor the foreseeable but disastrous outcome of a full regional war in the Middle East.