The Property Market - First Quarter 2022

The housing market’s strong momentum has carried over into 2022, with more listings, more sales and further growth in property prices.

The number of new property listings on realestate.com.au in February was 13.5% higher than a year ago, and while buyers had more choice, demand per listing still remains around 10% higher than the same time last year.

Buyers have taken advantage of the greater availability of stock for sale, with the number of sales so far this year remaining 4% higher than the same period last year. 

As a result, properties are selling quicker. In February. the number of days a property was listed realestate.com.au before selling fell to a median 35 days nationally - down 10 days compared to a year ago. 

Prices continued to climb 0.6% over the month, a slightly higher rate of price growth than December and January - but well below the 2.4% rise recorded in February 2021. 

Despite this, sellers remain confident in bringing properties to the market given buyer demand remains strong, albeit we will see some different trends emerging across the country. For example, there are some signs of an easing in some of the major regional centres where demand for property has surged since the pandemic. 

Many people are expecting that interest rates will start increasing later this year which is also creating some urgency from both buyers and sellers. 

Price growth in Melbourne has continued to slow with prices 0.7% higher over the month, while regional growth has also slowed from its peak, with prices 1.1% higher in February.

Melbourne's Mornington Peninsula and south east have seen the strongest annual price growth in the capital, while in regional Victoria, growth has been greatest in Latrobe-Gippsland and Warrnambool and South West. 

Monthly preliminary sales volumes in Melbourne are 9.5% higher over the first two months of this year compared to the same period in 2021, while in regional Victoria sales volumes are 13.2% lower.

Properties are selling faster in Melbourne with properties on site for a median 28 days during February, down from 30 days a year earlier.

In regional Victoria properties sold in 49 days on average, compared to 60 days in February 2021.

In Melbourne, demand per listing has fallen by 5.2% year-on-year and is now 14.2% below the peak. Demand remains strong in the Mornington Peninsular, while the outer eastern region also saw strong demand. 

In regional Victoria, demand per listing is 9.4% higher year-on-year, with the greatest level of demand in Geelong and Hume.

Source - realestate.com.au