End of Year 2021 Real Estate Market Wrap
with Leigh Martinuzzi
The Australian property market has boomed over the last 12 months, which for many is considered nothing but extraordinary. Of course, many homeowners and investors celebrate the price increases we’ve seen in 2021 however for many others the changing market presents many challenges. The value of Australia’s residential real estate has risen from $7.2 trillion in November 2020 to now over $9.4 trillion just 12 months on. Nationally house prices have increased by an average of 25% with regional areas, like the Sunshine Coast, outperforming capital cities.
While NSW and Victoria’s prices continue to stabilise the markets are still extremely active. For four consecutive weeks, the number of properties in Australian capital cities taken to auction has been above 4000 homes per week, a new record. Adelaide and Brisbane however continue to pump along. With a huge amount of buyer demand, the house prices in December house for the greater Brisbane area have risen 2.8%, with Adelaide trailing slightly behind at 2.5%.
The Sunshine Coast is one of the hottest markets in Australia admired by many as a lifestyle destination. This has meant significant growth over a short period and as more southerners make their way here, we can only expect further growth. This is putting pressure on the property market which explains why we are experiencing some of the fastest and greatest price increases in Australia. On average, Sunny Coast property prices have risen by 25%, with some areas and homes achieving price increases of 50% and above. With the Olympics now scheduled for 2032, it is predicted that by mid-2024 median prices on the Sunshine Coast will rise to $986,000.
New listings continue to hit the market with the last four weeks to December 5th recording 51,000 homes coming to the market for sale. This is above the 5-year average for this time of the year of about 41,000. It is likely with worsening affordability, tightening lending requirements, and talks of a rate rise towards the end of 2022, that we have now seen the peak of the market. I think the Sunshine Coast will be less affected as the buyer demand continues to outweigh supply.
We’d like to take this opportunity to thank you all for your support in 2021 and we look forward to assisting you with any of your property aspirations in 2022. With you all the way!!
Have a Very Merry Christmas and a Happy New Year – Leigh and the Team @ MPG
AUCTION RESULTS STATE BY STATE – WEEK ENDING SUN 12TH DECEMBER 2021
- Queensland – =87% (205/1833)
- NSW – 85% (889/1967)
- Victoria – 80% (1257/1631)
- ACT – 90% (156/76)
- South Australia – 92% (169/504)
- Tasmania – NA (1/242)
- Western Australia – 75% (4/792)
- Northern Territory – 100% (2/36)
*(Auctions/Private Sales) *(Source, REA)
REVIEW OF THE WEEK
Leigh assisted us in purchasing our new home while we were interstate. He took the time to show us the house virtually which was very helpful. Leigh also answered all of our questions and worked with us while we secured our finance and sold our existing home in Victoria. Highly recommend Leigh and his team. – Buyer
