In a time of limited supply, we can only expect to see property prices continue to rise. Nationally we continue to see property prices grow with April showing a growth of 1.8%. In May, so far, figures indicating a 1.2% climb, and year to date we are up 8.8% nationally. In the local area, we are experiencing prices being achieved 10% and above from comparable sales 12 months ago. Many banks are now revising their forecasts suggesting more growth ahead. Properties listed for auctions were up last week and yet reported clearance rates were down on the previous week, with the combined capital cities clearance rates last week sitting at 78.7%. Early indications of softening demand.
However, buyer demand is still up on pre-covid levels even though it has fallen has slightly since February’s high this year by 7.8%. There are signs of decreasing first home buyers in the market with loan rates reducing. The number of properties listed by auction and private treaty is up 107% nationally, with many homeowners eager to capitalise on the current high prices that are being achieved. Overall property supply averages are still down and struggling to keep up with demand.
One article this week suggested the mass migration of people moving from our capital cities to regional areas is slowing. While many like the idea of being out of inner-city lockdowns and favour areas surrounded by nature and space, the benefits of being near entertainment, recreation, educations services and facilities seems to still pull trump. If regional areas cannot keep up with that level of infrastructure and services, I think, people will be inclined to stay or even move back to the cities. I also feel that the perception of getting value or a “bargain” in regional areas, like the Sunshine Coast, as prices rise, might be shifting, and this may have a slight impact on those interstate buyers looking to make a move.
In light of this news, what we are likely to see in the year remaining is easing demand and less intensive buyer competition, the key reason for such rapid growth this year. I am confident we will continue to see good prices achieved this year with perhaps just a gentler pace.