If 2021 taught us anything, it is that (1) we really cannot predict or control everything that is happening in the outside world and (2) that we need to be financially ‘on top of it’ if we want to purchase a property, particularly in Sydney.

Australian property prices went up 22.1% last year, 25.8% in Sydney, the highest twelve-month growth rate since 1989 (CoreLogic). Why? Mortgage rates were below 2 per cent and the high demand for property in comparison to the lack of supply in the market.

In 2022 we expect that house prices will continue to rise, but not at such a rigorous rate. The RBA has made it clear that interest rates will not officially rise until 2023. To prepare for this increase, fixed interest rates have gradually been on the rise since late 2021, and even though they are still relatively low, fixed rates under 2% are rare however variable rates under 2% is now being offered by at least 5-6 lenders at present.

House prices will also depend on COVID-19’s continual return of restrictive policies, which tend to keep interest rates low and property prices up.

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