Post-Election Market Wrap
Weekly Real Estate Market Update with Leigh Martinuzzi MPG
With the election now behind us, we can expect the property market activity to pick up a little. However, it may not be a frenzy that many have become used to. Our markets on the Sunshine Coast are very much driven by our southern markets. Slower activity in the likes of Sydney and Melbourne will have a role to play in the level of activity we experience here. In the month of May, dwelling prices across the combined capital cities have fallen by 0.1% so far.
While the markets have flattened, post-election there are 3000 properties scheduled for Auction this week, which is the highest since easter. This doesn’t consider the number of properties that are for sale by private treaty. This increased level of activity will surely raise the level of new buyers coming to the market. In most cases, a seller will become a buyer, in which case we can expect an increase in buyer activity in the weeks ahead. There seem to be more new properties being listed for sale recently but still down on historic levels.
Regional sales are starting to slow, however, I have a feeling this may be a temporary decline due to the election, floods and other events. Sales activity in regional areas has been tracking 20% above the five-year average, while the number of homes available for sales across regional Australia is more than 40% below the five-year average. Currently, there are 20.5% fewer properties for sale in regional Australia than last year.
Annual sales are up on the Sunshine coast by 8.7% and 16.6% above the five-year average with 12,821 reported sales in the past year (February). In the 12 months to April, dwelling prices continue to perform well with the Sunshine Coast seeing a yearly gain of 29.7%, with housing prices slightly outperforming units. The time properties are on the market before being sold is just 16 days on the Sunshine Coast which remains one of the quickest sales markets in Regional Australia. A-grade properties are being selling quickly, while some properties locally are now taking up to 30 days or longer to sell. Price reductions over the past year have increased slightly with vendor discounting at 3.3%, up 0.3% from last year.
The labour government is promising a wage increase to match inflation which will be good for buyers but it may have a counter effect on what they desire to happen. With a wage increase that will likely push inflation higher, good for property owners as this will help keep property prices inflated. It will also mean the government will need to increase the cash rate rise to help dampen increasing inflation, which of course will have a counter effect on borrowing capacity for many buyers. Clearly, we will see a slowing market albeit one in which I think good results can still be had. Well-presented homes that are marketed well and priced right will still find good interest.
Auction Clearance Rates (Preliminary). Week Ending 22nd of May 2022
- Queensland – 63% (92/1338)
- NSW – 83% (299/1586)
- Victoria – 76% (412/1287)
- ACT – 85% (61/80)
- South Australia – 81% (115/355)
- Tasmania – N/A (1/187)
- Western Australia – 20% (5/730)
- Northern Territory – 100% (2/30)
REVIEW(s) OF THE WEEK
Helpful and communicative
“Leigh was extremely communicative and easy to work with during our home purchasing process.” – Buyer
“Leigh was a great agent, with wonderful communication and efficient service. He sold my house in a matter of days for the price he said it would sell for and the whole process was drama free and very easy. I would recommend Leigh Martinuzzi to sell anyone’s house if you want results!” – Seller