Despite all the challenges Covid19 threw at us and a sequence of lockdowns, Australia’s housing markets experienced a once in a generation boom in property prices in 2021. As the new year begins, the real estate market begins to shift into the hands of buyers. The high demand and low stock that once was in 2021 is starting to change as more properties come on the market.
In recap 2021 saw housing growth of 22.1% with the monthly growth rate peaking in March at 3.7%. Whilst this growth is expected to continue into the new year, it may slow down as buyers won’t feel the same pressure to purchase as there will be more on the market.
A large majority of this group of sellers are landlords which in turn leaves many looking to move into a new rental with limited stock. In particular, our office experienced up to 10 rental applications on one property with up to 40 inspections, all motivated to move in as soon as possible to avoid being at their current rental when inspections happen for its sale. This increased demand will drive rental prices in the new year.
As society begins to come back to normality, we may see the rise in interest rates from their historic low. This may also have some impact on property demand, however, the market seems like it will stay strong.
With borders opening, 2022 is set to have more buyers looking for investment properties after lacking in previous years due to covid. Waterfront and beachside property have made the most promise in potential price gain as Sylvania Waters and Burraneer become one of the more highly sought after suburbs in the shire. Kareela was also notably mentioned by realestate.com.au as a suburb to watch out for this year with 4348 online property visits when the NSW average is 1451.