As we enter the second half of the year, it is clear our market is normalising. Our agency is a good representation of Noosa Hinterland market trends due to our team carrying out the largest volume of sales in the region. Anecdotally, we saw our average sale price increase by 15% in 2020 and 35% in 2021. Following this incredible 50% increase in average sale price over the last two years, we saw 16% growth in the first quarter of 2022 and only 1.4% growth in the second quarter. From the beginning of this year, average days on market have increased by 32%, from 53 to 70 days. Growth is plateauing and days on market are extending.
It is important, however, to note a balancing market is different to a downturned market. Locally, we are balancing or normalising after two years of phenomenal growth, which couldn’t continue forever and should not be confused with reports of downturns being seen in other states, like Sydney and Melbourne. We provide a different offering to these markets and the housing shortage in our region is still a real issue, so speculation of a downward market is not a reality for us right now.
More properties are now on the market, interest rates have increased and buyers are becoming more discerning. We are essentially back to a pre-covid market, making it a crucial time for engaging experienced agents who understand this changing landscape. Honest advice is critical regarding strategy and pricing so that sellers aren’t caught out and end up on the market for an unnecessarily extended period of time, achieving less than favourable outcomes.
The rental market is experiencing a similar trend in that the frenzy of the last two years is subsiding. There is still a strong demand for properties, however what was being leased in a day is now taking one to three weeks to find the most suitable tenant.