2022 Property Market: Buyer’s Now Have The Upper Hand
After a booming 2021 for property, investors and owner-occupiers have watched as properties have been snatched up at auction for hundreds of thousands above reserve prices. A property in Sydney’s inner west even managed to sell for over $2 million its $5 million reserve auction price. However, looking at the 2022 property market, certain conditions have changed, finally giving buyers the upper hand. In this 2022 property market update, our experts outline these changing conditions, and what they mean for buyers.
What Conditions Have Changed?
At the end of 2021, the supply of homes on the market, both newly constructed and pre-occupied, increased. This is a result of multiple factors, the largest of these being delayed construction and owner-occupiers putting their homes on the market to capitalise on the significant demand for property in 2021.
Alongside this, demand for property is expected to cool off, due to:
- a planned tightening of lending restrictions from ASIC
- prospective home buyers leaving the market due to high property prices
- fewer people being in the market due to purchasing a property in 2020-2021
What Does This Mean For Buyers?
This is a relief for buyers. A larger selection of homes, alongside a reduction in demand, means that it is less likely for a new home on the market to go to auction, as the property seller runs the risk of either not getting the return they desire, or not getting a buyer for the home. With fewer homes going to auction, buyers aren’t directly competing against each other on house prices as much. This also reduces the likelihood of a wealthy investor, or investment group buying the property significantly above the reserve price.
Vision Property and Finance Director, Hamish Ferguson, comments on this below:
“The current state of the market has finally shifted to benefit buyers, which hasn’t happened since the beginning of the pandemic. Whilst there isn’t much hope for price relief, there will be a greater range of homes available for buyers in 2022.”
Are There Any Negatives For Buyers?
Whilst current market conditions provide a range of benefits for buyers, there are some drawbacks with having a reduced amount of auctions. Less competitive properties not being put to auction reduces the ability for buyers to find a good bargain.
If you are looking to capitalise on the increasing amount of properties being put to market, organise a free chat with one of our award-winning property and finance experts to get you focused on your future.