New Challenges in 2022
With a new year comes new challenges, and new expectations – and while some experts predict a significant drop-off in the market this year it’s likely to be a different story in Hills and Fleurieu.
Interest rates are expected to remain steady with banks adding another 0.5% buffer when assessing a buyer’s ability to repay the loan. This adds more of a safety net should interest rates rise this year.
Buyer activity is expected to drop off in major cities which would see the price of housing dip – this is far less likely to carry over into smaller country communities as the lower supply ensures less severe swings. Buyer interest is also expected to wane as we enter an election year. While the retention or change of power has little immediate effect on the property market it often creates reservation in buyers and sellers alike. This in turn can limit the supply keeping sale prices high.
In 2021 we saw explosive growth in the market – 2022 looks to produce a much truer market especially as we approach a federal election.