Market Wrap Up with Sirah Robb

Director and Principal of Wythes Real Estate

As we take a deep breath at the start of a new year it’s a good time to reflect on how incredibly fast and vibrant the property market was in 2021 and what’s ahead for 2022.

Record prices and a massive demand for property on the Sunshine Coast was seen last year. Independent property researchers, SQM, released the Housing Boom and Bust Report 2022 late last year. Head researcher, Louis Christopher, forecasts that dwelling prices across the nation will drop in the second half of this year, most likely as a result of further intervention by the APRA banking regulator.

However, it seems the Sunshine State will top the national real estate market. The area is expected to increase in value growth by 8 to 14 percent, a slower rate of increase than last year, yet still healthy.

“And the reason why we say that is for two specific factors: firstly, Brisbane and Qld region’s house prices, while being overvalued by our measurements, are nowhere near as extremely overvalued as Sydney and Melbourne at this point; and secondly, we’re expecting ongoing migration outflows from Victoria and, to a lesser extent, New South Wales, into Queensland, and that will create an increase in underlying demand”, said Mr Christoper in his report.

Locally we will likely see our market go from hot to warm this year. With a large proportion of our buyers historically relying less on borrowings, therefore impacted less by interest rate rises, the commentary for what may happen nationally is less likely to apply to our market.

Certainly, with the volume of buyers we still have ready to purchase the homes on the market, we don’t see a crash nor a reduction in prices any time soon. The increases in values we have experienced over the last 2 years is not sustainable so a change will occur as this seller’s market becomes more balanced, however we see this will result in a flattening of prices, rather than a drop, possibly late this year or sometime next year.

It seems things aren’t going to slow down too soon for the Sunshine Coast or our fabulous Noosa Hinterland property market!

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