If you’re debating whether selling in 2022 is a good idea or not, then it’s worth paying attention to the predicted health of the property market for this year.
For those looking for an approximate date on when they can expect the Australian property market to simmer down, experts say that early 2023 is when we can all expect to see real change. According to new research released by The Commonwealth Bank of Australia, Westpac Banking Corporation, Australia and New Zealand Banking Group, and National Australia Bank – otherwise known as Australia’s “big four” banks – when comparing to the current 20%, growth is set to slow to just 6% in 2022, before dropping again to 4% in 2023.
Falling house prices will be linked to the tightening of lending criteria, increased interest rates, decreased affordability, state and international borders reopening, the construction boom stabilising, and the end of government stimulus packages. However, if you’re a homeowner wrestling with the conundrum of selling your property ASAP or waiting it out until the market is set to peak next year, how do you make the ‘right’ choice?
What To Consider Before Selling In 2022
Finding the right time to sell property for the maximum price and the shortest listing period is somewhat like walking a tightrope, and the process of selling in 2022 is a perfect example of this. If you wait too long, interest rates may rise and the market will in turn fall. If you sell too soon, you may miss out on the property pricing peak set to hit in the first quarter or two of next year. Some buyers may feel a sense of panic with the prospect of interest rate increases, while others may opt to wait until they can enter the market at a more affordable price point.
The simple fact of the matter is that nobody can predict the future, especially when there are so many variables to consider. Interest rates are unlikely to rise too dramatically in the immediate future, so if you’re debating on selling in 2022, be sure to factor in the below before you make a decision.
Know Your Motivation – While there are a range of market conditions to consider when selling property, it’s important to remember that there is no right or wrong time to do so. Your own individual set of circumstances will dictate whether it’s a smart choice for you or not, such as transitioning into retirement, or purchasing your very first home. If there’s no middle ground or you’re pressed for time, you know what you need to do.
Consider Major Life Changes – If changing jobs, getting married, or having a baby is on the cards for you in the next six to twelve months, consider how this may influence your decision to sell in 2022. Moving into a new home can be extremely rewarding and beneficial in the long run, but let’s face it – it’s stressful. If you have a major life event coming up, try to avoid having them overlap with selling property for the sake of potentially making more money.
Identify Your Long Term Goals – FOMO – or “fear of missing out” – is another driving factor to consider when assessing the state of the Australian property market, as buyers are making concessions on things that they swore they never would. In turn, FOMO can also affect sellers who are trying to capitalise on this, but it’s important to think long term if your situation allows you to do so. After all, property almost always goes up in value.
Should you be looking to sell your home or purchase a new one, enlisting the services of a free property advisor like ESPA can often be a game changer, and help you to make informed and educated decisions when it comes to the prospect of selling in 2022. As an example, your advisor would likely research the property, local agents, check the zoning, evaluate market conditions, and communicate clearly with you regarding all of your options – but where do you find one?
Take The Stress Out Of Selling Property
As a completely free service, Emergency Services Property Advisors provide property advisor services to Police, Fire, Ambulance and S.E.S personnel and their families right across Victoria.
Luke and the team at ESPA are passionate about providing support to some of Australia’s most valued public servants. Along with key industry insights, ESPA also works with a broad range of service providers linked to the real estate industry such as conveyancers, trades, legal practitioners and mortgage brokers.
If you are an emergency services worker looking to potentially buy or sell property in the future, please get in touch with Emergency Services Property Advisors today to discuss how we can turn your real estate dreams into reality, or call Luke directly on 0414 757 705.
