Where property prices are heading in 2022?

It’s hard to know exactly what to expect from the housing market amid constantly shifting circumstances. 

However, let’s have a look at the latest CoreLogic report on the housing values over the last year to identify a few trends that are giving shape to the markets to predict what we may be up against in 2022. 

Despite many homeowners’ hopes, the total value of housing grew at the slowest pace of 1% last month, a slowdown from 2.8% in March 2021. The weakening demand for housing might be the direct result of : 

  • Interest Rate Rise Loom: A significant rise in mortgage repayments is on the cards for Australians this year. 
  • Stock Levels Normalise: An increasing number of houses are being listed for sale. There is less urgency for buyers to make the purchase.
  • Worsening Housing Affordability: It takes very deep pockets to gain a foothold on the property ladder right now.

Hobart and Brisbane housing values have risen the most in 2021, with an annual increase of 28.2% and 27.4% respectively. 

Brisbane, Adelaide and regional Queensland led the charge, while Sydney and Melbourne property prices lagged. Melbourne property values actually dropped 0.1% last month. As for Sydney, house prices rose by just 0.3%, the smallest gain for 14 months. 

This means some of the heat has come out of the Sydney and Melbourne markets due to a surge of listings and significant affordability constraints. 

Buyers are going further outside these larger capitals, inevitably pushing up prices. In December alone, dwelling prices were up 2.9% for Brisbane, followed closely by Adelaide with the second-highest monthly growth rate of 2.6%. The typical home in Adelaide now sets buyers back an average of $569,882. 

CoreLogic's Tim Lawless said far fewer available homes to satisfy demand and strong interstate migration were likely to support prices in these regions in the near term. 

Regional markets are in good shape

The pandemic had caused a change in the behaviour of buyers who had been looking to leave large cities in favour of coastal or countryside locations. People are looking for better lifestyles, more room in order to work remotely and enjoy their holidays. 

Since March 2020, housing values in regional Australia have sped up to 32% compared t

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