Selling In Summer 2022: What You Need To Know

The Sydney property market was white-hot last year, with CoreLogic reporting that dwelling prices rose by an astronomical 25.8% over the twelve months to November 2021.

However, by December, the real frenzy was largely behind us, and the market had turned a corner, returning to a more even market for both buyers and sellers. Take auction clearance rates, for example. A clearance rate of around 60% is considered a sign of a balanced market, and the rate on Saturday 11 December was 63%.

So, if you’re thinking of selling this year, what does the market have in store for you?

What are the experts predicting for the Sydney property market in 2022?

• Prices will continue to grow. Although we saw huge price increases last year, experts and economists are still predicting further growth in 2022, albeit not at the same rate. NAB has revised their 2022 forecast from 3.6% to 5% growth for Australian dwellings, while ANZ is tipping capital city housing prices to rise by just over 6%.

Here in inner-city and inner west Sydney, prices in some suburbs are flagged to rise even more. The latest Shore Financial State of Sydney Report has named Erskineville as its number one ‘Rising’ Sydney suburb for 2022, forecasting house price growth of 12.6%.

With data from Domain showing that the inner west was the second most-searched-for region in NSW in 2021, it's clear that buyer demand for properties in our area remains strong.

• Housing affordability will be in the spotlight. After a year of big property price increases across Australia, housing affordability is coming under scrutiny. With the Real Estate Institute of Australia (REIA) reporting that housing affordability declined across the country during the September 2021 quarter, with the proportion of income required to meet loan repayments rising to 36.2%, first home buyers may be among those to feel the pressure in 2022.

In fact, there are signs that first home buyers are already being impacted, with the number of first home buyers decreasing by 12.6% across the country in the September quarter according to the REIA, and new loan commitments to first home buyers falling for the ninth consecutive month in October 2021 according to the Australian Bureau of Statistics (ABS).

• The gap between house and apartment prices will narrow. House prices outperformed units last year as lockdowns prompted buyers to seek more space. And nowhere is the gap between house and unit prices greater than here in Sydney, where it costs on average $523,000 more to buy a house than a unit, according to CoreLogic. But given the affordability issues now present in the market, experts are predicting that demand for apartments will return as people seek out smaller, more economical homes.
• Investors are back. The ABS reports that new investor loan commitments rose by 1.1% to near-record levels in October 2021. It was the twelfth consecutive month of rising new investor loan commitments, with investor loan commitments growing 90% over the year. Now that our borders are open once again, international investors are expected to return to Sydney in 2022, adding further fuel to the market.

Thinking of selling in 2022?

There’s no one-size-fits-all ‘right’ time of year to sell, and for some properties, summer is the perfect season to go on the market. If your property is south facing or tends to be dark, shady or cold, it might be more appealing to buyers in the heat of summer. Houses or apartment complexes with pools are especially attractive in the warmer months, and homes within desirable school catchments are in demand from families looking to lock in enrollment at the start of the school year.

In previous years, summer has typically been a quieter time for real estate sales. But given how heated the market was last year, there are many buyers who missed out and are still looking to buy, and summer 2022 could well be the one to buck the quiet summer trend.

Here’s where to start if you’re looking to sell this summer.

• Prepare your property. Carry out all those little and large repairs and maintenance jobs, Marie Kondo your belongings, and tidy up the garden, if you have one. Could the home use a fresh coat of paint? Would the carpets and windows benefit from professional cleaning? Now’s the time to get your property open-home-ready to make it as enticing as possible to would-be buyers.
• Find an agent. Research real estate agents in your local area. Who’s getting good results? Who has a good track record and positive reviews? A useful trick to help you decide is to choose an agent from whom you’d be comfortable buying a property.
• Do your research. After such an outstanding year last year, property values have risen by a lot, so it’s a good idea to refamiliarise yourself with prices in your area. Researching 2021 sale prices for comparable properties will help you estimate what your home might sell for. Your agent can also give you a market appraisal on your property and help you set a sale price based on similar recent local sales.

Sydney’s inner city and inner west property markets may have shifted gears at the end of 2021, but forecasts for this year are resoundingly positive, and there are still plenty of quality buyers looking to make a purchase. If you’re thinking of selling this summer, don’t hesitate to get in touch.