2022 - What to expect..
As our agents and staff commence the new year and prepare for the January/February market, we felt it timely to review some economic insights from the experts on property market trends and predictions for 2022.
From Business Insider Australia, the Commonwealth Bank predicts house prices will peak in 2022, forecasting a 7% increase on 2021 prices.
From Domain, “without a doubt, the Australian property market has realized a significant gain over the pandemic period. Over the last 12 months, there was a national increase of (on average) $126,000 to the median value of an Australian home. Melbourne has increased a total of 15%.” In addition, “November figures have revealed a boost to property values for the 14th month in a row” a clear sign the property boom isn’t over and is the market still growing.
From Gareth Aird,head of Australian economics at CBA, “the Australian housing market is in the twilight of an incredible boom that has been fuelled by record low mortgage rates. The phenomenal lift in prices is not over yet given dwelling prices are still rising briskly in most capital cities. But near term indicators of momentum coupled with the recent move higher in fixed rate mortgages suggest that conditions will moderate from here.” Gareth also predicts, “the economy will be at full employment by the third quarter of 2023, and that annual wages growth will have pushed to the RBA’s desired 3% range, which will in turn force the RBA to lift the cash rate.”
From Michael Yardney’s latest ‘Property Update’ publication, his three exciting forecasts for the Victorian property market:
1. Property demand from home buyers is going to continue to be strong.
Currently, home prices are surging around Australia, auction clearance rates remain high, and the media keeps reminding us we’re in a property boom. The result is emotions are running high at the moment, with FOMO (fear of missing out) being a common theme around Australia’s property markets.
2. People will pay a premium to be in the right suburb
If COVID taught us anything, it was the importance of living in the right type of property in the right suburb. Purchasers will look for things such as shopping, business services, education, community facilities, recreational and sporting resources, and some jobs all within 20 minutes' reach.
3. This cycle dominated by upgraders
The current property and economic environment plus years of Covid related lockdowns have meant that Aussies are looking to upgrade their lifestyle. With record low-interest rates and surging property markets, many homeowners are looking to upgrade to larger homes and in better suburbs while smaller homeowners are upgrading their lifestyle and moving out of the city to regional areas.
All in all, comforting sentiments, insights and predictions for 2022. The 7% increase in housing prices in 2021 reveals an astonishing 22% increase on 2020 prices - remarkable at a time of economic recovery from the COVID-19 crisis.
With many Melbourne clients concerned how values will perform in the coming year, these comments will be come as excellent news to those thinking of selling. Clients can feel confident their assets have and are continuing to appreciate at an excellent rate and that the 2022 market will create exciting opportunities to capitalise on that growth.
For more insights and information on prestige property trends, contact one of our experienced team members to discuss what this could mean for you and your home.
