First-home buyers whose new year resolution was to climb the property ladder might have to re-consider, with specialists projecting another challenging year for aspirational homeowners.
However, there are few indications of hope: more houses are anticipated to hit the property market, giving first-home buyers options and possibly less competition, potential interest rate growth that should keep downward pressure on unusual price growth.
The average Australian homeowner has become $131,236 wealthier on paper over the past year. So far, there are few indications in 2022 that the pandemic property market boom is about to end.
According to CoreLogic’s latest home value study, prices increased by 22.4 per cent over the past year, a significant growth since June 1989.
Even industry spectators suggest the future trend of the real estate market would largely depend on current owners’ selling preferences.
Sydney and Melbourne have seen inventory levels regularise over recent months, making supply and demand more evenly balanced.
Source: abc.net.au
However, the situation in Adelaide and Brisbane is very distinct; buyer competition and supply remains tight are the major contributing factors supporting the rising pressure on prices.
Adelaide and Brisbane were the prominent stand-out capital cities for price jump over January (2.2 and 2.3 per cent respectively). Brisbane also ushered in real estate inflation over the past year.
Houses Outdo Apartments
The COVID pandemic pick for standalone houses over units has also persisted, with house value increasing 1.3 per cent last month, corresponding to a much more 0.3 per cent climb for apartments.
According to CoreLogic, there has been a gap between unit prices rise and median house to a record level of 28 per cent, which it expressed might result in demand slowly reversing towards medium and high-density living.
While inventory levels have been low, the cumulative number of house sales across Australia in 2021 was around 40 per cent outside the decade average.
CoreLogic assessed about 652,000 unit and house settlements over the calendar year, the most heightened on record.