WHAT’S HAPPENING IN OUR MARKET? Well, here we are, rate rises are occurring and everyone wants to know - will we see the housing market collapse? As long as you don’t ask the media, it is looking more like a calming of the seas rather than a free fall. As capital cities are generally experiencing a downturn in prices and clearance rates, regional areas are showing good price resilience and in many regional markets excellent results are consistent. Core Logic confirmed, over the 12 months to January 2022, 24 regions recorded double-digit annual growth for houses, and 18 regions saw gains in excess of 20%. Construction costs are rising sharply; supply lines are damaged by the pandemic and as the cost of money rises, fewer new homes and complexes may be built. Established homes may well benefit moving forwards. The return to immigration will likely see a few hundred thousand people entering Australia per annum, these people will need dwellings (in 2018 there were 239,000 entering Australia). Moreover, the newGovernment plans to bring in a shared equity scheme for lower income earners, similar schemes overseas reportedly had a positive impact on house prices. Yes, interest rates are rising but unemployment remains low and economic growth appears strong. It is also notable that the number of available listings are down – meaning few homes are available to buy whilst at the same time regional Australia has grown by 70,900 extra people in 2021 (ABS 2021). If you’re wanting a sales strategy or just to knowwhat your home is worth in the current market, contact us.
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