Activity in the property market has been under way for around four weeks so far in 2022, but the early indications are that buyer demand is already returning to the levels we saw back in October and November last year.
Agents are reporting that the temporary oversupply of stock that we saw in December has now adjusted, and the market has bounced back into the new year with positivity. In fact, the latest data from Corelogic shows that property values rose slightly in January, with an overall increase of just over 1 per cent being recorded around the nation.
The biggest question on most people’s minds, of course, is where to from here? The most recent inflation and GDP numbers will mean that talk about potential rises in interest rates will grow louder as the year goes on. There are already indications that interest rates will begin rising around the globe in near future, so we should expect the Reserve Bank of Australia to follow suit at some point. The key question is when.
Whilst we expect to see the property market change later in the year, conditions right now are still very positive, with demand outstripping supply. The brief change in this balance that we saw in December showed how quickly things can change. However, our expectation is that the first quarter of this year will be a positive time to sell in Victoria, and this should be the case until stock levels start to rise again. History teaches us that we are more likely to see this occur around March/April at the earliest.
This will be a period when we expect the market to again be tested, particularly as we get closer to either of the two elections that are expected in 2022. As we all know, the lead-up to an election is a time when scaremongering will be at its peak, and this is likely to add to the uncertainty that many home buyers will be feeling as the year goes on.
With this outlook for the year ahead, our advice to anyone considering taking their next step in their property journey is that if you want to sell with an increased degree of certainty, this is more likely to occur in the first half of the year.
Of course, the most important factor in making a decision of this nature is to weigh up your own individual plans and circumstances, along with the specific conditions in your local property market. So if you would like to talk through your options with one of our independent Advocates, feel free to give us a call.