Professionals Gosford
Unprecedented annual growth rates regionally
House price growth in some of Australia’s largest regional centres has soared beyond
that of our biggest capital cities, as the pandemic and working from home continues
to inspire more city dwellers to make a lifestyle change to the regions, according to
new CoreLogic data. Specifically, it’s rare to see the regions outpacing the cities, and
not only this, we’re also talking about unprecedented annual growth rates of up to
40%, too.
Interest rate hikes late in the year
More recent RBA communications have seen them indicating it is now unlikely rates
will be on hold until 2024 with many now expecting a rate increase or several
increases in the second-half of 2022.
It’s also safe to assume that as interest rates increase, most lenders will also increase
variable mortgage rates by an equivalent if not larger amount.
Slowing price growth
Savings made from lower interest rates were very quickly absorbed by higher housing
prices and that commensurate boost to affordability from low rates is expiring.
This will contribute to a slower pace of price growth in 2022. In addition, the
Australian Prudential Regulation Authority’s macroprudential changes, which took
effect late last year, have moderately borrowing capacity for new buyers.
2022 brings more choice and less competition to the housing market
There were three consecutive months of elevated new listings, with November
bringing a decade high for new listings in capital cities. This trend has continued into
the new year, January 2022 was the busiest for new listings in eight years meaning
some buyers can expect the intense levels of competition seen in 2021 to ease.
Ask an agent for advice
If you want to squeeze every cent out of your property you can, it’s best to
arrange for a local agent to have a walk-through of it so they can offer up advice
about exactly what they would recommend should or should not be changed