The January to June period of 2022 will be a little bit out of the ordinary as a number of calendar events in Australia will be impacting market activity.
These events include the Easter long weekend (April 15-18) and the school holidays (April 11-15). In addition, Anzac Day falls on a Monday in 2022, so that would also be another long weekend. However, the most impactful one is the federal elections, which will happen on May 21 2022.
So right now, the month or so prior to an election is usually quiet in the property market. For this year, it seems that this period has begun as the school holidays start. This means it may affect some activity for a few weeks.
This year, there will likely be a “wait and see” for buyers and sellers due to the lack of predictability about who will win in the elections. While there is nothing definite on whether investment taxes or anything property-related will be included in the agenda, it will be a tight race. This means a degree of uncertainty that will compel some buyers and sellers to wait until the election is over before making a move.
If you’re not already on the market and don’t want to list right now, then use the time wisely by ensuring your property will be well prepared to stand out amongst all the other listings that are holding off and will launch with you. This will be your competition and you want to be better than them.
Regardless of who wins in the election, there will be no change in the interest rate, inflation is expected to continue to increase and long-term pandemic-influenced trends will continue, such as sea-changing and/or upgrading to bigger homes because of the work-from-home setup. This is expected to preserve high buyer demand throughout 2022.
However, life remains unpredictable because of Covid-19. Will another strain appear in the latter part of the year? Not even the medical experts know. This creates a potential benefit from selling sooner rather than later, due to a degree of certainty around two issues concerning market conditions:
Omicron and hospitalization cases are on the decline. That’s one of the reasons for opening international borders to foreign visitors effective February 21.
Market momentum in Newcastle, Lake Macquarie and the Lower Hunter Regions are still robust at present, especially for the AAA listings – the ones with no work to be done, presented beautifully, often staged and marketed really well by an experienced agent who also knows how to negotiate too.
Supply is still building. More sellers who paused in 2021 to get the most out of their capital gains are listing now. Vendors could experience stronger competition from other properties in the latter part of the year, if supply continues to increase. Especially if they are holding off now due to the elections, holidays and pending interest rate increases and come to the market later.
But just beware, timing the market is very complex and you should buy and sell when it suits you personally!