“A lot depends on macroprudential policies, but with increasing constraints on accessibility and enrollment, a slowdown seems evident,” Mr. Mortlock said.
To follow the evolution of the market over the coming months, he keeps an eye on one main metric: the number of registrations.
“Enrollment volumes are the key metric for me. We saw the number of listings very low due to fear of an early stage pandemic and then they stayed low as sellers faced the problem of finding another home in such a hot market, ”he said. he noted of the supply difficulties in 2021.
“As the market calms down, more listings should appear, tilting the balance between buyers and sellers a little closer to the center,” Mortlock predicted.
This could come at a price for some buyers who felt pressured to pull out for fear of being left behind.
“Towards the end of 2021, we saw a lot of properties going into deals that would tend to languish in the market, such as units in Melbourne and Sydney. Typically, these properties have been less attractive lately, but either speculators have jumped in trying to time a recovery, or these properties have simply been bought by people who have missed so many times that they are desperate to enter the market, ”Mr. Mortlock explained.
“A lot of these properties could lead to losses due to the competitive market and what people in the industry like to call FOMO,” he added, noting that he “doesn’t personally support the acronym. bloody”.