There's been much anticipation surrounding the predictions of property experts on how real estate markets will perform in 2022. Australian's have nervously awaited the newest forecasts and now the experts are delivering. Especially with how it will impact those buying an investment property.
2021 has proven significant market growth for Australian home owners. House prices have increased by 25% on average, throughout the nation, in the last 12 months. In the midst of this, many have tried their best to claim their piece of the 'Great Australian Dream.' This has led to the demand for real estate exceeding the supply.
Bill Evans, the Chief Economist at Westpac, has announced that Westpac anticipates house prices to only increase a further eight per cent next year. Although predictions are expected to slow down, this forecast sits three per cent higher than what they predicted for 2022 earlier this year.
Other economists, however, are taking a more conservative approach towards their predictions of the 2022 property market. Many believe that it will only experience a national average increase of five per cent.
How Will The Each Capital City Perform?
Each capital city is predicted to experience growth throughout 2022. While not as significant as seen this year, the leading cities will be; Brisbane, Adelaide, Perth and Melbourne. Brisbane is expected to increase by 10 per cent with other cities experiencing a six or eight per cent growth.
Despite experiencing the greatest growth in 2021, Sydney and Hobart are set to face a six per cent growth. This is down from the respective 27 and 25 per cent they've experienced this year.
What About 2023?
Westpac Economists have also suggested that in 2023, Australian house prices will decrease overall. This decrease will average out the growth expected for 2022. Australian house prices are forecasted to drop by 5 per cent in 2023. Sydney and Melbourne are meant to be the most hard hit with a six per cent decrease to their property prices.
Although the RBA state that they don't expect to increase interest rates until the 2024 mark, it's believed that they will increase them in 2023. Hence, resulting in a forecasted decreased to property prices across the country.
When To Buy Property, If Not Already?
Although housing markets are tight in the current market, REIF are strongly encouraging clients to take action as soon as possible. With interest rates as low as they are at the moment, now is the perfect time to lock them in before mortgage repayments increase in the next few years.
If you're a home owner, you have a great advantage to make the most of the Australian housing market and leverage the untapped equity in your current property value to start buying an investment property and keep growing your portfolio.
Doing so now will allow you to purchase an investment property with your existing equity, lock in record low interest rates, cash in on positive cashflow, and pay off your home loan in half the time you anticipated that you would.
Does this sound like something that you would like to explore further?
If yes, feel free to click the 'Learn More' button below to book your free 60-minute Financial Future Consultation. In this you will learn:
How much your current property is currently worth
How much equity you have made in the increasing property market
How you can structure that equity into income producing passive income assets such as real estate investment
How you can pay off your home loan quicker
How you can create additional streams of income and retire comfortably
