Markets Go Up, Markets Go Down…
Weekly Real Estate Market Update with Leigh Martinuzzi MPG
A few charts below highlight how much the market has moved since the onset of the pandemic and how much it has corrected itself in the past ten months. As highlighted, overall national dwelling prices rose 28.6% from September 2020 to April 2022. Since the interest rates started to rise, prices have fallen -9.1%, with property prices still up 14.8% since March 2020. What’s also important to note is that property sales volumes are significantly down (-21.5%), which is to be expected in a downturn market with a great deal of economic uncertainty.
Regional areas overall have outperformed our capital cities during this time, however, the trend toward regional migration and house purchases is started to shift. Unit demand is starting to pick up, which can be witnessed by the reduced gap in the median unit-to-house prices. House values are sitting at 28.3%, down from 32.9% at the peak of the market. While it is a mixed bag across Australia with property prices and demand, the Sunshine Coast still seems to be showing some level of resilience. Some people had suggested that the rising interest rates haven’t even been noticed yet and suggest that we might be in for further price drops moving forward. This will depend on future cash rate rises, with the big four banks saying that the cash rate may begin easing as early as the ned of 2023. That being the case, we could expect to see some stimulation in the marketplace. 
Inflation seems to have peaked in other economies and will likely follow suit here soon. Australia has performed fairly well over the past 12 months compared to other economies, and with the future immigration growth looking high, we should hopefully avoid a recession. For sellers, the message from the current market is that prices are softer on average, down about 9% on this time last year. Buyer confidence remains low, so sellers need to present great value to get buyers excited. And for buyers, my thought is clear, the market may swing back around sooner than we might expect and you certainly wouldn’t want to miss out on future capital gains if property prices start to rise again.
AUCTION CLEARANCE RATES
- Queensland – 40% (193/1164)
- NSW – 61% (829/1586)
- Victoria – 58% (384/1171)
- ACT – 59% (61/101)
- South Australia – 65% (77/336)
- Tasmania – NA (0/160)
- Western Australia – 54% (13/608)
- Northern Territory – NA (0/24)
*(Auctions/Private Sales)
REVIEW(S) OF THE WEEK
Great communication, and excellent experience.
Leigh and his team did a superb job in helping us find our new home. His communication throughout the process was great and ensured we were able to get into our new home by Christmas. – Buyers
