As we head into March, the looming Federal election, increased property listings, and the rumble of an imminent interest rate rise has seen the heat come out of the market in most capital cities.

Vendors keen to take advantage of the pricing boom have come out in force to list their properties, while prospective buyers, feeling uncertain about what may be around the corner, are thinking twice before taking the plunge.

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.

As we head into December and the final property report for 2021, economists, real estate market analysts and the big banks are each forecasting how the property market will perform during 2022 and 2023.

With the pandemic boom coming to an end and increasing stock levels across all capital cities, the consensus is that the double-digit price increases seen over the last thirteen months won’t be repeated. Instead, expect a 5 to 6 per cent increase in 2022 and a price fall of 4 per cent in 2023.

Meanwhile, the talk of interest rate hikes continues, with all big lenders already pushing up their fixed rates in anticipation of an expected increase in 2023. Investor finance growth remains positive after more than doubling in May, with investors chasing the capital gains already witnessed throughout 2021. closed.

Life is getting back to normal for Sydney, Canberra and Melbourne, with lockdown restrictions lifting and business as usual in the real estate market this month.

According to CoreLogic, new listings continue to rise across all capital cities, surging 28.2 per cent in the four weeks to mid- October. While this could signal relief for potential buyers, the Treasurer, Josh Frydenberg, has given the strongest indication yet that a crackdown on home lending is in the works.

Home loan approvals have jumped by more than two-thirds in 2021 through a combination of low-interest rates, looser lending standards and Government stimulus schemes. But, as house values climb, up more than 18 per cent over the past year, any increase in interest rates could trigger mortgage distress. The Council of Financial Regulators will release new home loan recommendations this week.

There’s a spring in the step of the real estate markets across the country as we head into October. As anticipated, new listings have increased across all capital cities over recent weeks. The largest number of new listings were seen in lockdown capitals Sydney and Melbourne.

CoreLogic reports that we’re experiencing the highest level of housing turnover for twelve years. Almost 598,000 house and unit sales were recorded for the year ending August 2021.

This is the highest number of sales since 2004 and a 42 per cent lift on the annual number of sales over the same period in 2020.

Welcome to Spring! Traditionally the busiest time of the year for real estate nationwide. Typically, sales and listing volumes both rise from September to November, and while buyer demand and property supply increase over the season, the impact on prices is usually marginal.

As we enter September 2021 however, a large portion of the country remains in lockdown. Demand remains high, but stock volumes are low.

Data from Core Logic shows increasing median prices in most capital cities, quick sales and continuing real estate records, and as lockdowns lift, a robust recovery should follow.

On the plus side, vendor activity is predicted to increase, bringing better listing volumes to market. Mortgage rates remain low, household savings have grown, and international borders remain closed; these factors point to increased buyer activity.