As the year draws to a close, it’s interesting to reflect upon the 2022 property market. It’s been an interesting year.
2020 and 2021 saw record breaking highs in the market with around 30% growth in many areas, including much of Newcastle. The Reserve bank told home buyers that interest rates probably wouldn’t rise until 2024, assuring many buyers that they were safe for another 2 years or so. As we now know, interest rates have risen several times in 2022, which has had an enormous impact on the market, with many people now reluctant to buy property and others under great stress.
Even investors have stayed away. Many thought that lower prices, a tight rental market and high rents would have enticed them back, but rising interest rates have held them off.
What has been most interesting in Newcastle is the sporadic nature of the market. There has certainly been a dip in prices for many homes and areas, but others are holding strong. Good quality, renovated houses in blue chip areas are still going strong. In fact, we’re still seeing record prices in many areas, such as Hamilton South and Merewether Heights.
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