With interest rates rising, and more rises expected this year, the question on everyone’s lips is, how will this impact house prices? And, what will the market look like in the back half of 2022?
As always, elections tend to create uncertainty. This coupled with an interest rate rise has created some nervousness. Is this simply a stutter, or a sign of a cyclical slowdown?
As media commentators start to use statistics to back their predictions, they don’t always tell both sides of the story. It’s important to consider both sides of the market when thinking about your home’s value, i.e. the demand and supply sides. Demand remains strong and especially high in semi-regional and regional areas, however, supply is lower. This is not a surprise after the record-high sales levels witnessed over the past 24 months. This, coupled with building supply chain issues, means we’re seeing reduced stock in the market.
What to make of all of this? Well, in areas such as the Sunshine Coast where demand remains high, however supply is starting to lag, prices should remain on the rise, which is great news if you’re looking to sell in 2022.
Cameron Kusher, Director of Economic Research at realestate.com.au has published PropTrack Property Market Outlook for May 2022 which gives an overview of supply and demand metrics, by state. If you’re interested in understanding these trends in your state, we recommend you check it out here
If you’re after a more zoomed-in overview of the Sunshine Coast market, please don’t hesitate to give the team at Amber Werchon a call on 5430 0888