real estate South Coast Property Specialists (Carlene Franzen) Tips #1075:
The Year in Review and What’s InVolStore 16 September 15th2022? 2017 for7th, 28 April December 2017 Vol 48 27th 2018 Well, what an extraordinary year it has been for everyone. More covid, more lockdowns, more staying at home etc. The Real Estate industry has been no different in terms of being extraordinary. Across Australia we have seen house prices increase on average by around 22%. However, in NSW regional areas this increase has been close to 29%. In addition to this increase, the time on market has dropped significantly which has reduced the cost of advertising and lowered the stress on vendors. Across Australia, the general trend during 2021 was that houses performed well while the inner city and high-rise apartment market were not as strong. This seems to reflect people’s preferences to reduce their exposure to Covid by living in close quarters with others and generally “looking for more space”. 2022? We are already hearing potential purchasers asking how long will the property boom last, and will it crash in 2022? Well, according to the analysts no one is predicting a crash in 2022. In previous weeks we have reported that the banks are predicting that the market may peak in Q3 in 2022 and then retreat during 2023, but then again no-one really knows. Certainly no-one (or few) predicted the massive increase that we have seen over the last 2 years. In fact, when Covid first started many were predicting gloom and doom for the industry as people weren’t going to be able to inspect properties or attend auctions etc. How wrong they were. Generally, the analysts are predicting that property values will keep rising in 2022 but not to the same extent as they have during 2021 and probably not everywhere. The issues that will be responsible for slowing the growth will be a lowering in demand as more properties come onto the market, the affordability of housing given the 20-30% increase in the last 12 months and that the regulator APRA is intent on slowing the market by changing the lending parameters. We suppose the great unknown still remains the impact of Covid. As we write these “tips” the numbers have just started to explode in NSW and are steadily increasing in Victoria. And the worrying news is that the new variant Omicron isn’t the one that is causing the increase (yet). So…… who knows what will happen and the impact that it will have in the community at large and on the property market. One thing is for certain, this time next year we will be more the wiser Merry Christmas and a Safe and Happy New Year Finally, on behalf of all our staff, we wish to thank all our vendors, purchasers, landlords, strata owners, tenants and contractors for their support during the year and wish everyone a very Merry Christmas and a Safe and Happy New Year. Let’s hope 2022 brings us all much joy and happiness.
beagle weekly : Vol 238 December 17th 2021
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