Sunshine Coast Listings Increase & Sales Volumes Down
Weekly Real Estate Market Update with Leigh Martinuzzi MPG
Property prices continued to decline last week, and although slightly, national prices have fallen by just 1% over the last 28 days. There is a definite sign of easing in our southern states, yet more significant price reductions are being noticed here on the Sunshine Coast and in Brisbane. This is to be expected, as typically we lad behind the likes of Sydney and Melbourne, and I would think it may be a few more months before we see the rate of decline ease here also.
In Sydney, there are reports of improved auction clearance rates, the best since mid-April, which is a good sign of improving buyer confidence. In our southern states, buyers are showing more enthusiasm for purchasing and more sellers are coming to the market for sale. Locally, we’ve seen a definite increase in the number of homes for sale, however, the number of sales transacting is low compared to this time last year, but fairly consistent month on month. Buyers on the Sunshine Coast and more locally in Woombye, Palmwoods and the surrounding suburbs are still showing signs of hesitation when purchasing.
The interest rate increases are taking most of the blame for this lack of buyer confidence. And it’s easy to see why. If you were pre-approved for $1M at the start of the year when the cash rate was just 0.10% your borrowing capacity would have been approximately $180,000 more than it would be now with the cash rate sitting at 2.85%. Each time the cash rate rises 50 basis points, your borrowing capacity reduces by approximately $25,000. Looking at the chat with below and considering a forecast rate rise increase to 4% mid 2023 before the RBA eases it back, we may expect to see prices start to improve later in 2023.
Here are some local stats. In Palmwoods there are a reported 52 properties available for sale as of today. I estimate that some of these have already sold, and a few are new builds or off-the-plan sales. In Woombye the number is slightly lower at 30 properties reported for sale. Arguably buyers have more to choose from now than they did six months ago when properties were being snapped up within days of coming online. This allows buyers more time to be selective and diligent with their purchasing decisions. The average time that it’s taking to sell now has been pushed out to 30 days for Palmwoods and 32 days for Woombye. At MPG our average sale time is sitting at 20 days.
Sales volumes have been steady in Palmwoods over the last two months with September and October reporting 10 and 11 property sales respectively. Eight property sales were reported for the month of September in Woombye, yet in October there was only 1 sale recorded. These figures can fluctuate month by month as contract time frames vary and it also depends on when the agents report the property as being sold. This indicates that buyers have more to choose from and will ultimately move towards the property that offers the best value proposition. Agents and sellers need to be mindful of their sales strategy, presentation, and price proposition to stay competitive in this market and achieve a good result.
We currently have a wide selection of properties to suit all needs. As the leading agency in the area, we are sure to be able to assist you with your buying or selling needs.
AUCTION CLEARANCE RATES – WEEK ENDING 21ST OF AUGUST 2022
- Queensland – 34% (222/1161)
- NSW – 57% (867/1434)
- Victoria – 57% (839/937)
- ACT – 60% (104/73)
- South Australia – 59% (135/289)
- Tasmania – NA (0/171)
- Western Australia – 23% (13/701)
- Northern Territory – NA (4/30)
REVIEW(S) OF THE WEEK
Great Outcome. Leigh kept us informed along the way with the purchase.
Leigh was very professional in all our contact and was a great communicator. Thank you Leigh for making this purchase possible with a win/win for both vendor and buyer. Thank you. – Buyer