Will 2022 provide the market balance we are looking for?
Many of us welcomed 2022 with anticipation of how life may need to adapt yet again, to this new era of COVID-19. Talk of interest rates, a slowing property market, fast changing rules, new variants, and a pending election creates lots of speculation of how property might perform over the coming months.
What’s important is that we recognise that market trends are returning to more ‘normal’ patterns of growth and that 2021 was the exception.
Our capital cities and regional centres are moving to their own independent cycles from the ‘unusual’ simultaneous rise in values that we experienced in 2021. Faced with the challenge of affordability, or lack of, the Sydney and Melbourne markets have slowed but Brisbane and the combined regions continued to grow more than 2% in the last month.
For some, the possibility of property values falling creates hope that they might get a foot into the market, but for others, this fear might stop them from progressing. For property values to fall, remember that vendors need to sell for a loss but at this point, more than 98% of houses and 75% of units on the eastern seaboard are selling for profit.
Average property values as of 31st Dec 2021 (source: Corelogic 2022)
- Sydney $1,098,412 (+2.7% Qtr)
- Melbourne $795,108 (+1.5% Qtr)
- Brisbane $683,552 (+8.5% Qtr)
With housing supply still catching up we are likely to see the property come back to a more balanced market so it’s vital to select your region and property strategically.
This means that the Great Australian dream of property ownership is alive and well, and time in the market is still your best ally.