Looking towards the FUTR
R E I Q P R O P E R T Y B R I E F - Hot Property – where is the QLD residential market heading?
| Q U I C K F A C T S |
+18.5% Nationally | Low interest rates | Interstate Migration | AVG wage 1.7% + p.a // AVG house 2.0%+ p.a | Low Supply High Demand | Returning Ex - pats |
| O V E R V I E W |
It is being called the “post-pandemic boom”. House prices are up by 18.5% on average over the last 12 months nationally. This amount of growth has not been seen in the region since 1989 when there was a 30% increase. This is due to extremely high demand and very low supply. The high demand is stemming from 3 different roots, increased interstate migration, ex-pats returning to Southeast Queensland and low-interest rates. It is possible that the low supply is being caused by the scare of the 1st lockdown in May 2020. Many people that we're considering selling decided not to because of the doom and gloom that was expected. Homeowners instead renovated and created their dream home that they will never sell. Fast forward to now, and there is very little stock on the market for sale.
| W H Y D O I C A R E ? |
If you are a homeowner, the value of your home has risen sharply in a short period of time. It may be a good idea to get a valuation and see just how much. If you are a buyer there is some serious competition in the market. With dozens of groups at open homes, multiple registered bidders and almost always a multiple offer situation it is hard to get an edge. Many buyers are now considering using a buyers agent to help them get an edge, view off-market properties and leverage their relationships with Real Estate Sales agents.
| S U M M A R Y |
How long will the boom last? This seems like it will be around for a while longer with the RBA saying that it will not raise interest rates until 2024 unless inflation rises above 2%. There are a few key economic changes that could slow things down. Credit tightening, rising interest rates and increase in supply.
