Palmwoods Real Estate on Fire: Million-Dollar Sales Spark Interest
Weekly Market Update with Leigh Martinuzzi MPG
I’m seeing an impressive number of property sales happening right here on the Sunshine Coast and in our local hinterland market. It’s been a whirlwind week, and Palmwoods is buzzing with activity. Let me fill you in on the exciting details of some recent transactions.
Palmwoods has been a hot spot lately, with many beautifully presented residential homes crossing the million-dollar mark. In the Old Orchard Estate, a stunning property recently changed hands for a whopping $1,095,000. Meanwhile, just down the road at 31 Paynters Pocket Road, another gem secured a cool $1,005,000. Over in Citron Place, Habitat Estate, a lucky homeowner cashed in with a sale at $1,001,000. Not to be outdone, Panorama Estate on Hinterland Street saw a property fetch $1,025,000. And the action doesn’t stop there; there’s another one in Old Orchard Estate, currently under offer at $960,000, and a fantastic one on Chevallum Road that’s gone for just on a million bucks.
It’s not just the high-end market that’s thriving; we’ve got some exciting sales happening in the more affordable price categories too. For instance, a charming property on Dunning Street recently sold for $775,000, and a more modern home with a smaller block in Habitat Estate went for $850,000. Even an older 3-bedroom home with some renovation potential on Cocas Avenue sold for $690,000. Buyer demand in the $600,000 to $800,000 range is flourishing. These are just a few examples of recent Palmwoods sales, but we’re witnessing similar trends in surrounding suburbs and across the entire Sunshine Coast. It’s a dynamic market right now, with prices holding strong and often exceeding market averages. Homeowners, you’ve got a fantastic opportunity to make a move and secure a great result before Christmas.
Zooming out a bit, it’s worth noting that markets all over Australia have made a strong comeback after the 2022 downturn. Capital cities have taken the lead in price growth, closely followed by our regional markets. I anticipate more growth in the coming months, even during the festive season, as buyers continue their quest for homes in an undersupplied market. This presents terrific opportunities for home sellers.
Now, let’s talk about a recent development from the Reserve Bank of Australia. They decided to increase the cash rate by 25 basis points this week, coinciding with Cup Day. The new rate now stands at 4.35%, with most lenders passing on this increase to borrowers. The decision was driven by concerns about inflation, which is still rising too rapidly in various service sectors. The RBA’s plan is to bring inflation back to 3.5% by the end of 2024, aiming to reach the target range of 2% to 3% by the end of 2025. As for the current interest rates, the lowest owner-occupier rate I’ve come across is 5.74%, while investment loans carry a slightly higher rate of 5.99%. There’s still a buffer of 3% in place, but some refinancing options offer a more flexible 1% buffer.
As I mentioned last week, the rise in the cash rate may not have a significant impact on essential expenses like rental fees, fuel prices, and electricity, as these are unavoidable costs for most people. However, it’s crucial to consider how this change could affect vulnerable mortgage holders who are already struggling to keep up with repayments and potential homebuyers with reduced borrowing capacity, especially in markets with rising property prices. Savings may dwindle, household budgets may tighten, non-essential spending may decrease, and small businesses could face challenges in planning ahead. This rate increase might also contribute to a rise in the unemployment rate, as some businesses may find it tough to sustain staffing costs.
Despite these financial challenges, the property market and the housing crisis outlook remain complex. Affordability is a growing concern, but without a substantial increase in housing supply, the relentless demand will continue to push prices higher. Historically, based on the 18.6-year market cycles, we can expect this current growth phase to extend well into 2025 and 2026 before a potential correction. It’s hard to imagine, but the real estate market never fails to surprise us!
That’s a wrap for my weekly update. It’s been short but sweet this time. If you have any real estate needs or questions, please don’t hesitate to reach out. I’m here to help you navigate this ever-changing market.