Ray White Upper North Shore

After an unprecedented surge in property values at the end of last year, everyone is keen to know what 2022 will bring and how this translates to the potential value of their home. Open homes have started the new year with an increase in numbers of people through. Some of these buyers are in the early stages of research/assessment, others are keen to purchase. Stock levels are on par with other years at this time. Family homes in good school zones and access to transports and shops remain popular on the Upper North Shore. Buyers are happy to pay a premium for a home where all the work has been done for them. Often this is because people are time poor, but more recently is a result of the rising building costs and difficulty in securing trades. Australia’s property market soared to record highs in 2021, with values in Sydney rising 25.8 per cent in the 12 months to November 2021. St Ives performed strongly, as property values rose by an amazing 27.5% and St Ives Chase was an incredible 40.7% in the same period. Whilst growth like this can’t continue, it certainly shows that our suburb is a popular place to purchase in. The key factors fuelling price rises in 2021 were historically low interest rates, government stimulus, a rebounding economy, improved household savings, and pandemic- driven factors such as working from home and the desire for more space. Leading economists and property analysts say that tighter lending standards, combined with affordability constraints and a predicted rise in mortgage rates, will affect buyer demand and price growth. In general, they forecast that property values are set to keep climbing this year, although at a slower rate. Mortgage interest rates have been steadily declining over the past decade and have been kept exceptionally low during the pandemic to support the economy. However, according to a recent report in Domain, mortgage interest rates are set to go up this year: ANZ expects the first hike in the first half of 2023, Westpac tips February 2023, NAB says mid-2023, while both CBA and AMP Capital predict November 2022. The unknown perspective of interest rate increases coupled with an imminent Federal election, traditionally slows a market – obviously time will tell. And while property values are set to slow Australia-wide in 2022, the Upper North Shore remains one of Sydney’s most desirable places to live. Because of its proximity to the city and beaches, apartments, and amenities JAMES’ MARKET COMMENTARY