Welcome to our January property market update and outlook for 2022
Well what a year 2021 was for the property market!!
Nationally house prices rose by 22.1% for the year and 3.9% for the quarter.
In Sydney, the average house price rose by 25.3% for the year and 2.7% for the quarter.
After lower than anticipated growth in Brisbane for the past few years, prices rose by 2.9% in December, 8.5% for the quarter and a huge 27.4%.
This growth was driven by several factors including record low interest rates, and properties advertised for sales being 24.7% below the 5 year average
Nationally, rents were up by 9.4% over 2021.
We did see a slowing in November and December with the Sydney market rising by only 0.3% and Nationally by 1.0%.
In this period we saw fewer people at open homes and auctions, however I believe this was more associated with more listing on market post lockdown and buyer fatigue from the year of lockdowns, working from home and home schooling. The auction clearance rate also fell from 83.2% in October to 63.8% in December across the major capitals
The positive from this is that properties coming to market in the coming weeks and months will be more realistic with their price expectations.
My outlook for 2022
- I expect the market to have further growth, but at a slower pace compared to 2021.
- The year will start strong, we are already seeing larger numbers of buyers out viewing properties
- The market will slow as we approach the Federal election. Housing affordability maybe one of the topics discussed
- We will see more properties listed for sale this year compared to the previous 2 years
- There will be further discussion around changing the current stamp duty structure and the high transactional costs
- There will be a further tightening of housing credit policies and possibly an interest rate rise
- We will see a return of the foreign buyer and expats returning to purchase here
We wish you and your family all the very best for 2022, and please get in contact with our team if you are looking to purchase a new home or add to your investment portfolio.