Will housing prices be infected by Omicron?
- There are signs Australia’s hot housing market is already beginning to cool.
- Values grew by 1.3% in November and nationally 22% over the past 12 months.
- Omicron could accelerate the situation as the COVID-19 variant spreads.
Omicron, the new COVID-19 variant of concern, is likely to infect Australia’s property market in 2022 and accelerate the cooling of the sector.
While many market pundits already believe house prices would fall in Australia in 2023, the outbreak of the new coronavirus variant is expected to lower prices sooner rather than later.
Australian housing prices have risen for 14 months straight, however the pace of growth in November has been the slowest since January, indicating the market has passed its peak.
Amid the pandemic, this year, homes rose in value significantly and are tipped to rise by 6% in 2022, although the situation is as unpredictable as Omicron.
According to CoreLogic, house prices grew by 1.3% in November and nationally over the past 12 months housing values have been more than 22% higher.
There are already signs the sector is cooling as auction clearance rates are slowing, lenders are starting to tighten borrowing criteria, as well as the end of government stimulus.
To what extent Omicron exacerbates the situation remains to be seen.
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