Market Essentials - February 2022
/
Source: istock.
This Month in Review
Welcome to the first Market Essentials report for 2022. Nothing much seems to have changed since we farewelled 2021. The pandemic continues to impact the economy. Prices of real estate Australia wide continue to surge, and prospective buyers are still scrambling to get a piece of the real estate dream here in Australia.
However, as we head the new year, several factors at play that could significantly impact the market in 2022. Bond market rates and inflation have increased in Australia and internationally.
Speculation is mounting that the RBA will raise interest rates ahead of schedule, banks have tightened lending criteria, affordability constraints exist for many, and a Federal election is on the horizon. In addition, an increase in new housing supply and speculation that property listings will increase at some point in 2022 has economists pointing to a significant cooling of the redhot housing market this year.
Despite the speculation, sales listings remained lower than expected during January in all state capitals except Melbourne.
Housing values continued to rise, although nowhere near as fast as 2021. One thing is for sure, 2022 looks like it will be an interesting year for the property market, and we look forward to keeping you in the loop.
