The Hunter property market experienced an unprecedented boom in 2021, with historically low interest rates and limited supply helping to drive property values to new heights. Asking prices climbed by an unbelievable 25.0% over the year to hit a median value of $678,000, according to SQM Research.
The rental market didn’t do too badly either with asking rents jumping by 12.6% over the same time frame. That means the median weekly rent for a house in the region is now $520 – up from $419 a year prior.
And while it’s safe to say 2021 was a year like no other, the data suggests the Hunter property market will enjoy another positive year in 2022.
Limited stock will continue to push up prices
One of the primary reasons for the Hunter property market’s exceptional performance over the past 12 months has been that the demand for property has continually outweighed supply.
Buyers were tempted into the market, lured by rock-bottom interest rates that mean the cost of servicing a mortgage has never been so low. But while there have been plenty of buyers around, there has also been an acute shortage of homes for sale, fuelling the competition for homes and pushing up prices.
All signs point to these conditions continuing into the new year, with the supply of property listings currently 34% lower than 12 months earlier.
Rents are likely to rise
Hunter rents are also likely to increase in 2022. That’s because demand for rental properties in the region has spiked, thanks to the lifestyle shift brought about by the pandemic. As a result, the number of available rentals is 7.3% lower than the year before while the vacancy rate is an incredibly tight 0.7%. And once again, the more competition there is for limited stock, the more upwards pressure that gets put on rents.
Thinking of buying in 2022?
If you’re thinking of buying a property this year, whether as an owner-occupier or an investor, it can be a good idea to work with a mortgage broker.
Why’s that?
Well, for one thing, a good broker such as Newy Finance works with you to understand your financial needs, circumstances and goals. They then use this information to find you the right home loan that best suits your unique circumstances – saving you time, money and stress.
Looking to buy a property this year? Get the advice you need by working with Newy Finance. Contact us by calling Jon Jones on 0410 699 969.