If you’ve been keeping abreast of the Australian housing market, you know that sellers are at a distinct advantage from a supply and demand perspective.
So if you either have your home up for sale or plan to do so soon, you’ll attract a critical mass of home buyers. And if you need to buy a home, you’ll face some stiff competition. It is, after all, a seller’s market.
This year has been one of uncertainty due, in part, to COVID-19. And as 2021 is nearly over, you might want to know what the new year might have in store.
Here’s a look at 2022 housing market predictions that you need to know about.
Australian Housing Market Poised to Rise and then Dip
Bloomberg recently cited Andrew Boak, an analyst with Goldman, as saying in a research note that the housing market in Australia is poised to peak late in 2022. It will then go through a stagnation period because of higher supply.
The analyst explained in the research note that prices will climb 22% this year, slow down to a gain of 5% next year, and then be flat the following year.
According to some projections, the federal government will intervene in the housing market in order to positively impact the home price growth rate.
Specifically, the government will roll out — should house prices continue to skyrocket — measures intended to slow down price growth into next year.
There could also be curbs on lending. One reason the housing market has been on fire, so to speak, is that interest rates have been low. This cheap debt has encouraged more people to enter the housing market.
So whether you’re buying a home in Australia or selling a home in Australia, you’ll want to be on the lookout for any news about government intervention.
More Open Home Attendance
According to Domain.au data, open home attendance in inner Perth is on the rise. It’s expected that this trend will continue into next year.
The more people who attend open homes, the more chances there are that these homes will be sold. This is something to consider if you’re currently mulling over whether to call a realtor to put your home on the market.
Sustained Confidence in the Housing Market
You can also expect to see consumer confidence in the housing market remain high going into 2022. In Melbourne, for instance, demand outpaces supply. And low mortgage rates are fueling consumer confidence in the housing market.
Australia Housing Market Looking Good for 2022
Will you be in the market either to buy a home or to sell a home in Australia next year? If so, these real estate predictions will give you some food for thought.
While no one can say for certain how the Australian housing market will fare in 2022, these predictions are still worth considering as you prepare for the year ahead. You’ll be able to decide what course of action makes sense for you.
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