The question on everyone’s lips this month; is the Aussie real estate boom over? Some experts certainly think the pandemic-induced boom is done. Market conditions have changed recently, with falling auction clearance rates and vendors taking prior offers that were ‘less attractive’ a few weeks ago. Economists predict value declines into Easter, with interest rates hikes still on the agenda for the second half of 2022.
REA data shows that new property listings are 13.2 per cent higher than the same time last year. Days on-market have also increased as sellers hold out for the best sale price. Prospective buyers not wanting to overpay are now spoiled for choice, as Domain reports that 90 per cent of properties on-market are impacted by the housing ‘slowdown’.
Meanwhile, with housing affordability now in free-fall for buyers and renters, the Real Estate Institute of Australia urges governments to ‘get on the front foot and prioritise housing supply shortages. It’s the most effective way of getting affordability under control’.
In addition, as the federal election looms, both Government and Opposition have promised that negative gearing will continue to be supported. On this basis, investors should be confident to invest pre-election.
Download and read the full Market Essentials – April 2022 Report.