The Property Forecast For 2022 | Impression Real Estate
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The Property Forecast For 2022

Posted by Impression on 29, Dec 2021

Property price forecasts are notoriously inaccurate, so we’re not going to try to make any of our own. The experts are already hard at work making predictions – and most think a dip in prices is on its way. 

But it’s not much of a dip, if the big banks’ economists are to be believed: BNZ is the most pessimistic, forecasting a 7% price decline in 2022, while the others are forcasting a 4% drop. Shaving 4% off house prices this year would only return them to September 2021 levels, which, as ASB points out, is “tiny in the grand scheme of the 35-40% surge in house prices since March 2020”. If wage inflation continues, the drop will have more of an impact for first home buyers, which will please the government. For anyone planning to invest in property, a price dip next year could be an opportune time to buy. Bear in mind, though, that there’s no way of knowing that prices will definitely fall. The 2020 forecasts of 15% falls in prices turned out to be about as wrong as possible, which underlines how hard it is to predict such a complex market. Either way, the long-term prospects for house prices continues to be positive. What may be a stumbling block, whatever prices do, is lending: banks are tightening the purse strings thanks to new legislation that some fear will cause a credit crunch. Our advice, as always, is to start working on your borrowing long before you go to any open homes. A good broker and financial advisor can help you make well-informed decisions about your investments. Remember that all Impression property management clients have a free hour each year with a financial advisor, so give us a call or email us if you’d like to set up a no-obligation meeting.

 

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