‘Inevitable’ slowdown predicted for housing market in 2022

The housing market is set for an “inevitable” slowdown in 2022, analysis from CoreLogic suggests.

House prices climbed a staggering 22.2 per cent over the year to November 2021.

Head of Research at CoreLogic, Eliza Owen, says it’s “probably going to be impossible to say what the extent of price falls would be, but what we do know is some of the things that could trigger that decline”.

“What we’re expecting is that when interest rates start to rise fairly continually we can see that demand for housing falls and prices fall off the back of that,” she told Emily Power and Jimmy Bartel, filling in for Ross and Russel.

“What we’re also starting to see is increased level of supply coming onto the market, particularly across the major cities of Sydney and Melbourne, so that gives more choice to buyers, more bargaining power to buyers.”

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