Property price growth has been on a positive trajectory, which is expected to gain momentum in 2022, says real estate company Rawson Property Group MD Tony Clarke.
Lenders are expected to remain bullish in 2022, with up to 105% mortgages likely to be available for some time to come, he notes.
“Other predictions buyers and sellers should keep in mind for the coming year include an increase in interest rates expected in late March 2022.
“We expect a slow rise to kick off in the second quarter of 2022, with two or three small, incremental increases over the course of the year. We do not, however, expect this to have much impact on demand at this stage, as consumers have proven very resilient and their confidence in property as an investment remains strong,” says Clarke.
Rawson has also seen an increase in renovations during the year. Lower spending on travel, entertainment and eating out has also given some homeowners more disposable income that is being used to increase the liveability and long-term value of homes.
“Further, important trends for forward-thinking renovators to remember include the influence of millennials on the property market. Millennials are definitely our next big wave of buyers.
"Understanding where and how this age bracket likes to live is vital for sellers and agents hoping to tap into this growing market,” he adds.
The property market was driven by first-time buyers in 2020, while 2021 was characterised by a return to market from existing property owners, he points out.
“First-time buyers were quick to leap at the chance affordable finance gave them to get onto the property ladder in 2020, but existing homeowners were more cautious about making changes during the first year of the pandemic,” says Clarke.
However, despite favourable market conditions, financial pressure on consumers remains high and affordability could become more challenging in 2022.
Further, the Covid-19 pandemic necessitated an accelerated adoption of technology and innovation in the property industry.
“This digital revolution will continue over the course of 2022, creating ongoing improvements in customer experience for property buyers, sellers and investors,” says Clarke.
“We are scratching the surface of what technology can do for the property experience and we are excited to empower our clients to make even better property choices in 2022. There has seldom been a more exciting time to be involved in property,” he notes.