It’s been an unusual start to the property market this year. Many of us have been holding our breath and wondering what will happen in 2022, after the most frenzied 18 months many of us have ever seen.
According to Domain’s head of research and economics, Nicola Powell, this year has opened even stronger than last year, with the number of home owners listing their homes for sale higher than this time last year – at least in the nation’s capital cities.
“This could be because sellers are being strategic with their market timing; listing homes for sale while selling conditions remain strong and prices are at, or close to, a peak,” she said.
“Some may also be timing a sale before interest rates rise or further macro-prudential measures are put in place.”
So what do the experts predict for the rest of the year? It appears that most think that while we won’t see anything like the growth of 2021, around 22%, there will still be steady growth, but more likely at a rate of about 5% – 8%.
Three of the big 4 banks are predicting the following growth for 2022;
We’ve noticed a shift from 2021. Many properties are still gaining very solid results, some even achieving well over market value or selling on the day/weekend of listing. Last weekend we saw a starter home that had at least a hundred groups through, caused a major traffic jam and sold that afternoon for around $100,000 above what we deem to be market value. Alternatively, we managed to pick up a villa on the same weekend for what we believe to be considerably less than market value – so we are still able to find some great purchases.
The biggest shift from last year, when everything was selling quickly and at record prices is that properties that are either less desirable or that are overpriced are staying on the market longer or having price reductions. This is a correction that needed to happen.
For more inside knowledge and to answer any of your questions on the Newcastle property market, please don’t hesitate to give us a call.