Sydney's real estate sector has been booming over the past 12 months, continuing the well-established trend of being Australia's most expensive capital city. 
Some of the metrics around the harbourside city's property growth over the last year, however, still beggar's belief. 
Data from Domain's latest Housing Price Report paints a picture of a metropolis on the verge of total price pandemonium. 
READ MORE: The 5 suburbs that gained the most value in 2021
The headline figures include 33.1 per cent annual house value growth and a median house price calculated at $1,601,467, which is nearly $400,000 more than during the same time 12 months ago. 
Perhaps the craziest metric from Domain's new data, though, is the dollar amount the average Sydney house grew by each day in 2021. 
According to Domain, Sydney house prices increased at a rate of roughly $1100 every 24 hours. 
That's a breathtaking statistic, and it underscores the frenetic state the real estate sector of the Emerald City finds itself in.
But how much longer can it last? Will 2022 be as prosperous a year for Sydney's property market as 2021 was?
According to Dr Nicola Powell, Domain's chief of research and economics, things are already beginning to slow down, and several factors suggest Sydney's market could start to cool down in a big way this year. 
"What we have seen in this price cycle is very unusual activity, with high levels of buyer demand, and ultimately supply just hasn't been able to keep pace," Dr Powell said. 
"But Sydney's housing supply is starting to edge back into normal realms; we're certainly seeing different characteristics. 
"Total supply, the choice for buyers, is starting to build, and Sydney is starting to get back towards the five year average of housing supply." 
Dr Powell said this increase of supply would start to favour buyers more and force sellers to temper what they can expect to sell their homes for. 
"What sellers are having to do now is be a bit more realistic on their price expectations," she said. 
"In 2021, we saw voracious price gains, and seller pricing was even changing throughout a campaign period. 
"But what we're seeing now is sellers are having to be more realistic because they realise there's more choice on the market."
Dr Powell added that Sydney buyers were already aware of the increased housing supply, and they would use it to their advantage. 
"Buyers are being much more aware of what they pay, they don't want to overpay, they know that there is a steady influx of property, which we saw in the final quarter of 2021, and they know stock is building," she said. 
"So buyers have got more choice, and they're using that to their advantage." 
Interstate migration, and the relative affordability for homes offered by places like Brisbane and Adelaide, may also impact Sydney's market. 
"Affordability is far less of an issue in Brisbane, and if you're sitting in Sydney, and you look at Brisbane, and the cost of property up there is half of what it is in Sydney, people will sort of think well, if I can now work from home, I might as well go somewhere where it's a lot cheaper and I can pay off a big chunk of my mortgage," Mr Oliver said. 
"It's the same with Adelaide, and we're starting to see that in some of the numbers, interstate migration numbers, particularly into Brisbane, have picked up dramatically; I suspect that will continue." 
Mr Oliver added that looming interest rate hikes from the Reserve Bank of Australia are also likely to put the brakes on not only Sydney's runaway market but also Australia's entire real estate sector. 
"I suspect when we look at the national figures in a year's time, they'll show a distinct slowing," he said. 
"In fact, by the end of the year, we might actually be seeing declines in prices as a result of higher interest rates, and that will probably mask a much steeper slowing in Sydney." 
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