The boom of 2021
All the buzz this month seems to be around Sydney’s housing prices – there’s not an innovation or reform in sight.
The ABC reports that in 2021, Australian property prices had the biggest price surge since the 1980s. Of course, in context it’s important to note that a comparable percentage jump then would have been in much smaller actual dollar values. According to the article, predictions for 2022 and 2023 generally point to a flattening and perhaps even modest falls. AMP chief economist Shane Oliver is reported as writing, “We expect a further slowing in national home price gains ahead of a peak and then price falls from later this year and in 2023,”
Likewise, the ABC reports that the Sydney median house price has risen from $1,202,786 in December 2020, to $1,601,467 in December 2021, As the reporter says, this is a 33% increase for the year, which equates to an average increase of $1100 increase per day. According to the story, this is the steepest annual growth on record.
On that note, Domain asks the $64 thousand dollar question: Should you buy that investment property this year? Apart from housing value having just increased by a mammoth amount and unlikely to repeat those increases at least in the short term, other things to consider include whether interest rates are set to rise, upcoming state and federal elections, changes to loan rules in 2021 and more. Loan Market Mortgage Broker Daniel Koutsaminis is quoted as saying, “There’s still a fairly decent amount of confidence, with clients wanting to invest. The sentiment is still pretty decent, pretty strong.”