FOMO (fear of missing out) continues to drive up prices locally as Queensland becomes the lifestyle state and poised for more growth in the year to come according to many experts. People are flocking to Queensland and still consider housing prices here as relatively affordable compared to house prices in the southern states.
An interesting chart I came across the other day highlights how failing interest rates have assisted with house price growth (please see chart below). At the same time, interest rate rises put pressure to slow growth. However, and perhaps most interesting is that over these 30 years the RBA cash rate has also dropped from 17.5% to the current cash rate of 0.10%. There have been more reductions than increases.
What’s next? I’ve heard talks this week that there are talks of how we manage the current booming markets, and one consideration might be to raise the interest rates. Currently, as advised by one of my preferred lenders, the best rate they have on offer is a 2-year fixed-rate at 1.89% with a maximum loan of 70%. Super cheap! Repayments based on the average price in Palmwoods at this rate would be $512.60 per week. This is another good reason why more buyers are coming to the market as it is often cheaper to hold a mortgage than to pay rent. So, while an interest rate increased might take away some heat from the market it may not be enough to soften the demand. Nationally, is it suggested that for every 1 property listed there are 1.1 property sales. Supply simply cannot keep up with demand.
Schedule a time for a valuation and get the NEW PRICE of your property today.
Palmwoods Snapshot Stats
House Value Increase – 10% +
Sunshine Coast House Value Increase – 7.7% (12 months)
Median House Price – $610,000
Average Weekly Rent – $585,000
Average Days on the market – 33 days
Properties for Sale – 27
Total Sales Year to Date – 47
Lending Rates & Repayments
Australia’s Current Cash Rate – 0.1%
Best Lending Rate – 1.89%
Average Loan Repayments – $512.60 p/wk
Average Loan Repayments – $562.82 p/wk
*Based on the Palmwoods Median property value price on a 2-year fixed-rate loan. ** Based on the Palmwoods Median property value price on a variable rate loan.
National Market Statistics
National Buyer Demand – up 58%
National Stock Levels – down 25.5% (below the 5-year average)
Annual House Value Increase – 5.8%
Combined Capital Cities – 6.3%
Combined Regional Areas – 5.6%
Auction Clearance Rates – 80%+
QUEENSLAND FORECAST 2021 – 16%
(ANZ predicted property growth forecast.)
Schedule a time for a valuation and the get the NEW PRICE of your property today.
