What does 2022 have in store for the property market?

What Does 2022 Have in Store for the Property Market?

Mark Stevenson, Managing Director at Bell Partners Finance (now Evolve Lending & Finance) wrote his end-of-year column for The Western Weekender looking ahead to 2022, sharing a measured but broadly positive outlook for the property market as Australia emerged from the worst of the pandemic period.

The country had moved from vaccine development to over 80 per cent of the population vaccinated, state borders had reopened and international travel was resuming. Against that backdrop, the economic mood heading into the new year was constructive. Property prices had held up remarkably well through nearly two years of pandemic disruption and most industry commentary expected further growth in 2022, albeit at a more modest pace than the strong gains seen through 2021.

For mortgage holders, the expectation was at least another 12 months of record low home loan interest rates. The RBA was not anticipating a move from 0.10 per cent in the coming year, though Mark noted that banks had already been lifting rates outside of official RBA cycles and tightening their assessment rates, which was beginning to constrain borrowing capacity and could take some heat out of the market.

He also flagged the significance of the moment when the RBA eventually did act. With more than a decade having passed since official rates last rose, any increase would be unfamiliar territory for a large portion of mortgage holders and would carry genuine impact on consumer behaviour and confidence.

On a personal note, Mark closed the year with a reminder to show some restraint through the festive season, a practical piece of financial advice wrapped in the spirit of the time of year.

As the market heads into a new phase, staying informed and well-advised matters more than ever. Contact Evolve Lending & Finance to make sure your lending is in the best shape for what lies ahead.