2021 was one crazy year in the property market with many people predicting a huge price drop in 2022. But experts are warning those bargain hunters waiting for the right moment that you might be waiting for a fair while.
One of Australia’s top research groups has revealed that the Sydney market is unlikely to plummet once the market hits its peak. A minor fall is more likely over a longer period of time. While this is good news for homeowners it means that first home buyers or investors might have to bite the bullet and purchase regardless of the market.
History shows that downturns in the market lasted multiple years and only gradual drops in prices. This is then usually followed by consistent prices with little movement in property prices. From 2017 to 2019 Sydney prices only dropped by roughly 14%. But even when these prices took a turn they were still above what they were before the previous boom. History shows that in the Sydney market prices boom, they hit a peak level, then they gradually fall.
What will happen in 2022 is anyone’s guess, this year there will be multiple different factors that will impact the market, we are already seeing banks tighten credit policies. In 2021 household savings was at an all-time high due to lockdowns and people didn’t have anything to spend their money on. We would expect this to go back to normal unless we are put into lockdown again.
With such strong trends in Sydney over the last few decades, it’s safe to assume most of Australia’s other major cities will be trending in a similar direction.
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