Expect Even More Before We Farewell 2021.

The Christmas season is edging upon us and as we move into the final month of 2021, all indications are pointing toward the market beginning to level out into a more balanced environment for both buyers and sellers. 

This movement appears to be aligning with all forecasts for 2022 which predict more positive growth is ahead of us, albeit at a slower pace than the record peaks we’ve experienced this year. We unpack some of the finer details of those economic forecasts for next year, below.

November did not disappoint, delivering magnificent results with properties performing exceptionally well, particularly on the auction floor. Our agency maintained a 100% clearance rate this month for all properties that proceeded to auction, above Sydney’s 69%.* In total, our agency sold 15 properties totalling $33M, enabling many of our vendors to be sold and settled before Christmas.

In case you missed them, our stand out sales this month were: 

• 28 Sanders Parade, Concord - Sold $4.660M - Highest sale price achieved for a knockdown in Concord.
• 29 Mepunga Street, Concord West - Suburb record for a duplex.
• 9 Jones Street, Concord - First time offered in over 70 years
• 302/68 Peninsula Drive, Breakfast Point - Sold off market for $2M 

Despite supply picking up post-lockdown, moving into December we can anticipate a temporary tightening on new properties joining the market as we all momentarily wind down for the holiday season. 

We can expect a similar pattern when it comes to rentals, with November remaining strong and steady, seeing 6 rental properties secure tenants within 14 days, at premium prices. Looking to start the new year afresh? Our rentals cover everything from low maintenance apartments to luxury family homes - check out what’s available here.

Considering selling in the New Year? You only have to be thinking about it to benefit from our ‘Coming Soon’ service. We’ll provide you with 100% free market exposure before you decide, and line up buyer interest before the New Year arrives. We’ve sold three properties with zero cost to the owners that took up this platform, since launching it in July. It’s a simple strategy, and it works. Contact us for a chat if you’re interested.
 

Market movements

New home listings rose by 41% in Sydney over October as vendors rushed back into the post-lockdown market, and before APRA changes on mortgage buffers came into effect. 

Total listings soared 25.5% in Sydney during October to 29,183 - the largest monthly percentage increase on record, to date.

What to expect between now and and the New Year

House price growth is expected to peak before this year comes to a close, with Sydney forecasted to reach a 27% lift before moderating. 

Nationally, the housing boom will raise prices to just above 21% by the end of this year, closing 2022 with the strongest growth we’ve had since the late 1980s boom.

Forecast for 2022

We can expect to see dwelling prices rise between 5-8% in 2022.

Although growth is likely to occur at a rate much slower than what we’ve experienced over the past twelve months, it is still positive growth in an already peaking market - an impressive feat that demonstrates we have one of the strongest real estate markets in the world.

Interest rates

The Reserve Bank of Australia kept interest rates on hold again this month, marking an entire year of record-low levels. 

The RBA has also advised that it is highly likely there will not be any increase to the rate before 2024, which is reassuring news for those bringing their next home search into the New Year.

Auctions

Since restrictions lifted across Sydney on October 11, weekly auction volumes have increased by nearly 50%, and clearance rates have shown steady rates of decline. 

Withdrawal figures have also risen, and these metrics are predicted to continue as the onflow of pent up supply continues to hit the market after the Christmas period.

Sydney homeowners

Here’s a silver lining of the pandemic worth knowing. CoreLogic's recent valuation of the nation’s housing stock determined that Sydney property owners have added hundreds of thousands of dollars to their wealth during the pandemic, with one in every four homes across Australia now worth over $1 million.

* Sydney auction clearance rate as at 20 November 2021