As we head into December and the final property report for 2021, economists, real estate market analysts and the big banks are each forecasting how the property market will perform during 2022 and 2023.
With the pandemic boom coming to an end and increasing stock levels across all capital cities, the consensus is that the double-digit price increases seen over the last thirteen months won’t be repeated. Instead, expect a 5 to 6 per cent increase in 2022 and a price fall of 4 per cent in 2023.
Meanwhile, the talk of interest rate hikes continues, with all big lenders already pushing up their fixed rates in anticipation of an expected increase in 2023. Investor finance growth remains positive after more than doubling in May, with investors chasing the capital gains already witnessed throughout 2021.
Rents are also starting to rise in anticipation of a return to immigration in 2022. This week, the ANZ reported earlier rental growth gaps between units and houses, and capital cities and regions have largely closed.
Exhausted real estate agents are keen to call close on the year, with many agents wrapping up campaigns and auctions by 18 December, returning to the coal face in mid-January 2022.
Download and read the full Market Essentials – December 2021 Report.