In December , we saw a very slight dip in pricing with the median dropping by $ 10,000 . Although such a small decline at a time when people are heading off on their holidays doesn ’ t necessarily mean that the market is slowing , there are indicators that suggest that Sydney ’ s extreme surge may be close to over . The main one being the time taken for properties to sell - time on market has been steadily increasing since March 2021 , although historically it still remains low .
There have been a couple of things that have driven the slowdown . The main one being an increase in properties for sale . Lockdowns are house price accelerators , driving down properties for sale at a time when people are saving more . The second is talk of an interest rate rise . Although this may not happen this year , it ’ s looking more likely it will happen before 2024 . The third is that housing finance is starting to be restricted . Of all markets , Sydney is perhaps the most sensitive to availability and cost of finance .
While prices will start to calm , the re-opening of international borders will push up rental levels . This is of course good news for investors but bad news for renters . In 2022 , it will be a major driver of construction activity , particularly for units .
If you ’ re looking to buy in Sydney , 2022 is likely to provide more favourable circumstances , or at the very least give you a little bit more time to make decisions . For sellers , a drop in pricing still remains off the cards for now .
11