What Will Happen To Melbourne Property Prices In 2022?
On a daily basis I get asked about what I think is going to happen to Melbourne property prices this year.
So, I decided I’d share my thoughts on the topic in an interview I did in February.
While my crystal ball isn’t working that well (whose is?) I did highlight some factors I do believe will definitely impact property prices this year.
Watch the video and let me know your thoughts in the comments below.
Note: The video was filmed in portrait mode rather than landscape, which is why it is narrow rather than wide. For the best viewing experience, I recommend you click the Full Screen mode button.
If you’d like to discuss how to best achieve your real estate goals in 2022, you can book a call with me and I’ll be happy to answer your questions and help you develop a plan to get the very best result for you and your circumstances.
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It actually changed this morning.
So it depends which economist you are listening to.
It depends which bank you are listening to.
It depends whether you are watching channel seven, channel nine, or channel 10, or the ABC.
There are so many differing opinions right now about what is going to happen.
And the scary thing is, is that when we look back to 2020 all of the predictions were so far wrong that I don’t know that we could have complete faith in the predictions moving forward either.
What I can tell you is that 2022 is a year of interruption and there will be changes to the market but it could very well be timing versus change.
So Easter, this year is April 17.
There is going to be a federal election.
That’s going to be announced and it can be announced three months out. So at the moment people are talking about May being the election. So realistically that means that from March onwards we can expect to hear a date.
Believe it or not, history has proven that every single time there is a federal election the real estate market takes a pause.
There is a holding of breath and there is a wait and see. So we are looking at potentially less investors as they wait to see which government will get into power and what’s going to happen with negative gearing and basically all financial policies that they’re going to be campaigning on that will potentially have a a flow on effect for the real estate and the property market and other investments as well.
Then we go into fairly smooth smooth sailing for may onwards, but as of this morning [so today is the 16th of February] they are now tipping that the first of the interest rate rises will happen in June.
Now, if it happens, we don’t know but this is what they’re what they’re saying. So that was previously moved to be August. So they brought that timeline forward a little bit as of this morning.
Realistically, there is at the moment there is a very healthy buyer base who are trying to secure a property, before the interest rate announcement gets made so that they can lock in a cheaper rate now.
So if they’re looking at a two or three year fixed rate they can get an extremely competitive rate now and they’re going to want to do that before that interest rate rise starts to happen, okay.
Melbourne, or Victoria but Melbourne in particular, because that’s where I work – we are looking also in the middle of our prime spring selling season we have got the Victorian election as well.
Now that is going to be either October or November. Word on the street is that it’s going to be in November.
So there is going to be a market of timing and very big opportunities to take advantage of selling through those swing times and potentially being able to buy very not a little bit calmer on the other side of that, if you time it right.