THE OUTLOOK FOR 2022

NOVEMBER PROPERTY REPORT

To say our property market is surging is an understatement. The Kinglake Ranges and surrounds are continuing to experience a supply and demand problem as the supply of properties for sale just can’t keep up with the demand resulting in record breaking prices.

 

For every new property coming onto the market, 1.4 properties are being sold around Australia. On the policy front, industry bodies and authorities will be monitoring the market in the coming weeks and months to see the influence on housing credit and prices in the wake of stricter mortgage loan serviceability assessments announced by APRA this week. Vendor data confirms that despite (what feels like) never ending lockdowns, we’re in a seller’s market with the days on market being extremely low. As per the REIV, Kinglake’s current median sale price is $743k compared to the Regional Victorian median sale price of $570k giving the quarterly price jump for the area a whopping 9.2%. That’s impressive growth for all property owners out there.

It’s been a chaotic time in the housing market over the last 18 months. States like Victoria have proven that it is possible to recover from the extended circuit breaker lockdowns. The reoccurring question we are asked from our vendors is what will the market look like next year? Some of the top number crunchers in the country have made their predictions for the year ahead.

 

It is handy to do your own research and understand what influences house prices now and over the last five to ten years. By keeping up to date with local house prices you’ll be better prepared for your own selling or buying experience. Purchasing you new home before a rush is beneficial as is deciding the right time to sell. And of course, there are many other considerations such as your property’s marketing campaign and presentation.

Will there be a property boom?

Many property experts are predicting the Victorian housing market will continue to scale new heights well into 2022 thanks so the resilient economic recovery we’ve experienced post lockdown. It is predicted that there will continue to be more buyers than sellers as the Reserve Bank of Australia will likely keep interest rates low until 2024. As the opportunity for a lifestyle change booms, prices in regional areas of Victoria reached new heights and are expected to continue to rise over the coming 12 months.

Or will house prices fall?

Not everyone believes this unpredictable outburst will continue. Some experts are forecasting house prices to fall as much as 7% in 2022 due to the chatter around interest rates rising. A recent parliamentary inquiry on housing affordability argued by increasing interest rates should help slow the surge in prices. While it is true that higher interest rates would result in lower housing prices, it would also mean fewer jobs and lower wage growth. However, this poor trade-off is not out of the question as the Reserve Bank monitors the sustainability of household borrowing.

 

It is handy to do your own research and understand what influences house prices now and over the last five to ten years. By keeping up to date with local house prices you’ll be better prepared for your own selling or buying experience. Purchasing you new home before a rush is beneficial as is deciding the right time to sell. And of course, there are many other considerations such as your property’s marketing campaign and presentation.

 
 

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