Well, we’re into Spring, which is traditionally a great time to buy and sell properties, but what’s ahead for our housing markets for the last quarter of 2022?
Looking back on the year so far, our housing market had a lot to contend with.
Coming off a once-in-a-generation property boom in 2021, our markets had to contend with floods, bushfires, geopolitical problems, a federal election, inflation, rising interest rates, and falling consumer confidence.
Last year almost all property markets around Australia saw strong growth in house prices, but this year the markets were more fragmented, with the Sydney and Melbourne property, in particular, slowing down while the markets kept up their momentum.
So back to my original question, what’s ahead for property for the rest of this year?
That’s what Dr. Andrew Wilson chief economist of My Housing Market, and I discuss in today’s Podcast.
Spring Property Market Preview
There are both positive and negative fundamentals to consider for the spring season.
- Negative fundamentals
- Affordability fell in Melbourne and Sydney
- Rising inflation (now slowing down & will reach its peak soon)
- Rising interest rates,
- Decreased borrowing capacity
- Low immigration (and therefore population growth), but this is turning around
- Low consumer confidence
- Positive fundamentals
- Strong economy – but will weaken a little
- Very low unemployment
- Household wealth is strong
- Very few underperforming loans – no forced sellers
- Very low overall LVR for the national housing markets ($2 trillion debt against $10 trillion in the total value of the residential property.)
- Significant undersupply of property – and not much in the pipeline
- Increasing rentals – rental crisis
On balance, this year is going to finish off a bit weaker than 2021, but prospects are brightening, and confidence in our strong economy is returning. At Metropole, we’re noticing more investors and buyers wanting to get back in the market.
There’s a window of opportunity for a buyer or an investor to get into the property market now, but it’s important to be careful at this stage of the cycle.
You can’t just buy any property.
That’s where a team like Metropole, with a proven track record of buying properties, can help you get into the market successfully.
Links and Resources:
Subscribe to our weekly Property Insiders videos – www.PropertyInsiders.info
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Some of our favorite quotes from the show:
“Because my borrowing capacity drops doesn’t mean you as a vendor have to drop the value of your price.” – Michael Yardney
“If you do a checklist of all the things that are positive and all the things that are negative, you’ll find there are more positive fundamentals.” – Michael Yardney
“I’ve also found that your income rarely exceeds your personal development.” – Michael Yardney
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