2022 was quite a big year for the real estate market right across Australia.
As Queensland Buyers Agents and Real Estate Sales Agents on the Sunshine Coast, we have seen both sides of the market throughout the year and have quite a unique view on everything that has happened.
So, to finish this year off and learn from the events of 2022, I have put together all the relevant property news that has happened over the last 12 months so we can recap, reflect and be better prepared going into 2023.
Here’s my 2022 real estate wrap-up and some of my predictions of what’s to come.
Interest rates have gone up 8 times so far
Having experienced eight consecutive interest rate hikes since May of this year, experts have predicted that the interest rate will continue to rise over the coming months, the increases will likely be smaller with a pause to assess the impact on the economy.
As of today, The Reserve Bank of Australia (RBA) has raised interest rates, taking the cash rate to 3.1 per cent – a scenario last seen in 1994 when the central bank hiked rates from 4.75 to 7.5 per cent which equated to a 2.75 per cent increase over five months.
However, let’s put things into perspective here. The cash rate was previously at an absolute record low of 0.1% in November 2020 and remained the same all the way up until April 2022. Even now, being around 3% is still incredibly low, when comparing it to the last few decades.
Essentially, this period is more of a market correction which is common
While, yes, it can put pressure on mortgages and finances, it’s because we’ve had record-low interest rates for such a long time, and we’ve all become accustomed to it. Rapid shifts like this are bound to shock the market somewhat.
While no one can change the interest rates, we can adapt to them. Let’s discuss this.
The Australian economy is moving forward and not floundering
Following on from the first insight, the Australian economy has grown solidly over the second half of 2022, as household spending on services remains firm.
So, while interest rate rises may seem like a negative thing, they also indicate that our economy is making good progress.
The reopening of international and domestic borders this year has allowed more people to come in and out of the country. This has stimulated the Australian property market as demand for housing has increased. Although the downward trend in housing values has decelerated, it’s still too early to suggest the housing market has moved through the worst of the downturn.
This is why, if you’re thinking about buying real estate in Queensland or selling on the Sunshine Coast at the moment, it’s important to find an experienced property specialist, like your local team at Worth Property Agents to help guide you.
Property ‘days on market’ numbers are still historically low
Recently, my team and I at Worth Property have noticed that, on a national level, properties are now taking longer to sell. In the three months to November, the median days on market was 35, up from a low of 20 days over the three months to November 2021.
While these days on market have increased in 2022, it is important to take note that 32-42 median days on market are still considerably normal and properties are still being bought and sold – which brings me to my next point.
Property demand mania has slowed down
Last year, in 2021, when home prices surged around the Sunshine Coast and even across Australia, we were seeing people clambering over each other to buy properties extremely quickly and skipping over important processes.
The result was that emotions were running high, and FOMO (fear of missing out) was a common theme around Australia’s property markets.
However, now that overall growth this year in our property markets has slowed and interest rates are starting to normalise, it’s actually a better, calmer experience for everyone because there is more time to breathe and check due diligence before buying or selling homes.
Queensland dwelling value for the past 12 months is still looking great
Brisbane was one of the best-performing property markets in 2021, with many locations experiencing a price growth of 30+%.
As we are now coming to the end of 2022, we can confidently say that the Brisbane real estate market continued to perform very well during the first half despite the devastating floods that occurred in the first few months.
While property prices in Brisbane have decreased since June this year, property prices on average are still 3.3% higher than they were 12 months ago. So, overall in 2022, despite all of the news hype, Brisbane property gained in average value.
Sunshine Coast rental rates have continued to climb
Rental value growth remains high across Australian dwellings, but the annual growth in house rents has shown signs of moderating.
Brisbane has increased 13.6% over the last 12 months which is the highest of any capital city. In addition, Regional Queensland has outperformed every other area nationally with numbers sitting at 11.4%.
In conclusion, 2022 has shown us that the best time to act is now!
As both a Queensland Buyers Agent and Sunshine Coast Real Estate Sales Agent, I always say to clients that: “those who try to time the market are the ones who usually miss out the most.”
So, if you’re looking at selling in Queensland or buying a Sunshine Coast property, I suggest you start looking at your options now.
At Worth Property Investing, we are your partners in finding the perfect property that lets you enjoy your life to the fullest.
If you’re on the move and looking for a change, contact us today on 1300 897 874. You can also book in a FREE Discovery Session for the New Year to start achieving your property dreams in 2023.
My final note and something exciting is coming!
On a personal note, I’d just like to share that 2022 has been a year of growth for both Worth Property Investing, Worth Property Agents and myself.
I’m excited to tell you that my book, Real World Real Estate, has officially launched and already sold a whopping 400 copies!
This book includes everything you need to know about buying a property and is a great Christmas present for yourself or someone you know.
With that, I’d like to thank you for being a loyal client and follower of ours through this exciting, albeit challenging 2022. It was a pleasure spending another worthy year with all of you and we look forward to many more!
Thanks for reading,
From Simon Read and our team at Worth Property Investing, we wish you a very Merry Christmas, a festive holiday break, and a safe and Happy New Year!