3 major house price changes in 2022 vs 2021

PropTrack economists recently dug into the latest data published in their House price index to find out the three biggest differences in home sales this year compared to last year.

  1. Momentum has slowed at all levels

While no one expected a repeat of the dizzying price increases of 2021, 2022 has seen a substantial change of pace.

In the year to October last year, prices rose nearly 25%, the fastest pace in more than 30 years.

PropTrack economists Angus Moore and Paul Ryan explain that in the current year to March, the rate of price growth has fallen to 18% nationwide. PerthPerth, TAS Perth, WA and Melbourne, in particular, saw declines during the month.

The March 2022 growth rate has now slowed to the level last recorded in May 2020, in the early days of the pandemic, of just 0.3%.

  1. Price growth in the capitals has fallen faster than in the regions

When it comes to the difference between capital markets and regional markets, PropTrack economists say 2022 exacerbated a trend from 2021.

“Regional areas continue to outperform capital cities – and the gap has widened,” they noted.

“As the pandemic has taken hold, lockdowns and remote working have simultaneously made cities less desirable and regional areas more desirable. This trend persists in the housing market in 2022, and with price growth in the capital slowing faster than regional price increases, it is expected to continue for some time to come.

While in March 2021, regional areas were growing 4.8% faster than metropolitan areas, this figure now stands at 9.1% and continues to rise.

  1. Homes continue to grow faster than units, but the gap has narrowed

Since the start of the pandemic, house price growth has greatly outpaced housing price growth – an anomaly given that the two typically align.

“At the end of 2021, annual growth in house prices was more than 14 percentage points higher than that of units – 27% year-on-year compared to 13% year-on-year for November 2021 respectively,” experts from PropTrack.

But reduced demand for units in the city center due to border closures and a shift in preference to larger housing has resulted in a wide divergence between home and unit performance.

It is too early to tell if these two markets will return to the status quo in the future, but in 2022 the gap is certainly closing.

While in March 2021 the growth rate gap between the two markets was 11.4%, it has now fallen back to 10.2% after peaking at 14.2% in September 2021.

About the Author

Juliet Helmke

Based in Sydney, Juliet Helmke has extensive reporting and writing experience in business, technology, entertainment and the arts. She was previously an editor at the New York… Read More

3 major house price changes in 2022 vs 2021

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Last update: April 20, 2022

Posted: April 21, 2022