Christmas Selling Season Set to Surge
Weekly Real Estate Market Update with Leigh Martinuzzi MPG
The Sunshine Coast is in a prime position to see some very strong sales during the Christmas period. With Christmas only just over 4 weeks away we typically see many homeowners holding off from selling now until the New Year. However, there has been nothing typical about the property market this year. We’ve seen on average property price increases this year of up to and above 22%. Sunshine Coast has outperformed most areas with price increases of 25% and above for many areas. We’ve also seen an increased amount of interest in the Sunshine Coast property market as many interstate and city buyers look toward the coast as a lifestyle destination.
ANZ has revised its forecast for growth in 2022 and predicts that the property markets across Australia will ease into 2022 before seeing a likely decline in 2023 as RBA is predicted to raise the cash rate. The new forecast by ANZ for 2022 is 6% growth across Australia with Brisbane’s forecast slightly higher at about 8-9%. What does this mean for the Sunshine Coast in 2022? If this year is anything to go by I’d suggest that the Sunshine Coast will see growth above both national and Brisbane averages. QBE predicts the Sunshine Coast will see a further 13% growth throughout 2022.
Of course, APRA might intervene and interest rates may rise sooner. The market has slowed rather quickly last week in both Sydney and Melbourne which saw next to 0% growth as their market is flooded with new listings. Affordability is a growing issue and to imagine a further 13% rise is hard to imagine.
We’ve seen property prices become unaffordable for many and this will be a shift towards a slowing pace of the property market. If you look at what has taken place in Victoria and NSW over the last couple of weeks many homeowners rushed to the market. The increased number of new listings was pleasing for many buyers however it has put downward pressure on buyer urgency and has given many buyers more room for negotiation. New listings for the week across Australia were up 16% largely skewed by the Sydney and Melbourne markets which noticed new listings up 25% and beyond.
Naturally, with more properties hitting the market and prices still climbing we will see a slowing market. Not necessarily a bad thing and is still likely more favourable for sellers rather than buyers. Now in Sydney and Melbourne sellers have more competition when selling and therefore less ability to negotiate in their favour with buyers. If you are selling the preference is always to sell in isolation. With talks of interest rates rising and a slowing market, buyers are more likely to wait a bit longer for a better deal.
On the Sunshine Coast, I’ve never seen fewer properties for sale. There is a severe shortage both in sales and rentals. Although Brisbane has reported new listings up by 7.4% it is not quite the same in regional areas. Right now, those who are selling are few and far between and the benefit is all theirs. Buyer numbers are through the roof and REA indicates that property searches in Queensland are higher than in most other areas. Selling over the festive season might seem unpractical, however, if you want to the advantage of less competition in a market fuelled by huge buyer demand I’d recommend getting in before the New Year rush.
Auction Results State by State (Preliminary). Week ending Sun 21st of Nov.
- Queensland – =88% (146/1594)
- NSW – 88% (789/1921)
- Victoria – 85% (1014/1703)
- ACT – 92% (102/79)
- South Australia – 95% (140/469)
- Tasmania – NA (0/193)
- Western Australia – 50% (6/774)
- Northern Territory – 29% (7/38)
Review of the Week
We found Leigh and the team very approachable friendly and accommodating. We had a sale from the first viewing. Awesome service! – Palmwoods Seller