2022 Review & 2023 Prediction (1/2)
2022 will end, and the property market saw massive changes during this year. I predicted the most 10 important events in 2022 last year. Let’s review it and see what happened:
- Interest increase: Everybody knew the interest rate will increase in 2022, my prediction was 5% or higher but the rate increased more than expected to above 6%.
- Rent increase: In this post, I explained why rent needs to increase, the rent increase is near inflation by around 8% this year but it is expected to jump in near future.
- More regulation in favour of the tenant: The government continue to interfere property market by increasing rates, amending CCCFA, changing dates for healthy homes and criteria for first-home buyers can get help from Housing New Zealand.
- Property price increase slows down and in some areas decline: Price increase slow down and in some areas property price drops up to 15%.
- Some developers bankrupted: in this post, I explain new builds and what happened to property construction.
- Fight between developer and purchaser over delays, sunset clause, defect, …: Still FHBs are hit with an unprofessional developer that executes sunset clauses or cause problems by delaying or selling defective homes. You can find a sample every week in news. Talk with a professional person to protect yourself in your next buy.
- New build oversupply: You can see in this post how agents report 600 new builds without demand in West Auckland.
- DTI implementation in all banks and limiting mortgage: While rules around CCCFA were relaxed from July 2022 but banks continue to give finance hard with tools like DTI, higher mortgage test rate & LVR, ….
- Labour and material shortage: There is a labour shortage now and more kiwis leaving the country than people arriving. Material delivery and logistic problems were an issue through 2022 but improved last quarter of the year.
- Challenges and delays between government and councils about RMA change: While some information was published about RMA changes but still political discussion and consultation process about grey areas is ongoing.
I want to highlight again if you have the knowledge, plan, strategy and get help from A team (coach, accountant, broker, lawyer, agent, property manager, builder, planner, … ) whatever happens in the market you will make money out of it. If you have any questions about how these impact the property market contact me and don’t miss my next post which would be 10 predictions in 2023.
Merry Christmas and happy new year and wish the best for everybody who made money out of the property!