What the RBA’s Pause Means for Buyers and Sellers on the Sunshine Coast
Weekly Real Estate Market Update with Leigh Martinuzzi MPG
The Reserve Bank of Australia (RBA) kept the cash rate steady at 4.35% in its December meeting. While expected, this decision provides an interesting snapshot of where the economy—and the property market—might be heading. Inflation is easing but hasn’t quite hit the RBA’s target range of 2-3%. Household spending is slowing, and confidence is still in recovery mode. For buyers and homeowners, this pause offers some breathing room, though the RBA minutes hint at a “wait-and-see” approach for any potential rate cuts. Personally, I believe we could see a cut early in 2025, which would likely stimulate borrowing and buyer activity.
Nationally, the property market is sending mixed signals. CoreLogic data highlights a nationwide slowdown, with dwelling values rising just 0.1% in November—the smallest monthly growth since this year’s recovery began. Sydney values were flat, Melbourne saw a slight decline, and several other capitals experienced a marked deceleration in price growth. On the flip side, Brisbane and Perth remain buoyant, with annual dwelling value increases of 8.3% and 9.4%, respectively (some reports suggest even higher annual gains). These mid-sized capitals show that not all markets move in sync, and regional areas like the Sunshine Coast continue to demonstrate resilience.
Here on the Sunshine Coast, we’re in a unique position. Major developments, such as Aura and Harmony, and significant government infrastructure projects signal continued population growth. And growth breeds growth. The future outlook is positive. On average, annual dwelling values have climbed 7.8%, with quarterly growth at 1.8%. The median dwelling value now sits at $1,055,104. Despite national slowdowns, our lifestyle appeal keeps demand steady. Time on market has improved, dropping from 39 days to 30 days over the past year, and vendor discounting has tightened from 4.5% to 3.4%. These metrics highlight strong buyer interest and greater seller confidence—a win-win for those navigating the Sunshine Coast market.
Let’s talk about housing supply—or rather, the lack of it. Matusik’s recent insights show that while new dwelling approvals rose 6% this year, they fall far short of what’s needed. Over the past 12 months, 168,000 new dwellings were approved, but experts say we need to be building closer to 300,000 annually. High construction costs, labour shortages, and regulatory hurdles are slowing progress. Approvals for high-rise apartments are especially low, with only 27,500 approved this year. Prefabricated homes and ‘stick’ construction might offer solutions in the coming years, but for now, the backlog remains immense.
So, what does this mean for homeowners and buyers? Prices are unlikely to drop significantly, even as growth slows. The supply-demand imbalance ensures that well-presented properties in desirable areas like ours will retain their value. For buyers, waiting for a rate cut might mean tougher competition down the track. The best time to buy is when it’s right for you—not when you think the market might favour you. For sellers, now remains an excellent time to list, especially if your property is well-presented and priced strategically.
As we approach Christmas and the New Year, don’t let naysayers convince you it’s not the right time to sell. If the timing works for you, there are always opportunities in the market.
As always, if you’re considering a move or want to discuss your options, reach out to the team at Martinuzzi Property Group. We’re here to help you navigate these trends and make informed decisions. Don’t forget to check out my latest property e-magazine for more insights, here.
