As we fast approach the end of a very abnormal year, people are constantly asking us about how our local real estate market in 4213 and our surrounding areas is really performing i.e. whether prices have gone up or down and of course what the market is likely to do next year?
Now too, as we have reached the last quarter of the year – traditionally our busiest selling period, it is timely to provide you, not only with the facts, but importantly, some of the reasons why.
Have property prices decreased since Covid 19?
"No, the fact is that the local area prices have actually increased since Covid 19", says Murray Duthie, Principal & Licensee of First National Mudgeeraba.
Some of the likely reasons for this are:
- Usual buyer demographics. We have continued to see our usual buyer demographics in the market. In 4213 these are tradies, health care workers and teachers etc who have retained their employment and if anything, the tradies we have spoken to say they are the busiest they have been in a long time!
- The elevation of “safe location” in choice. We see a shift by buyers seeking a more open and safe environment for their families. The greater Mudgeeraba area ticks the box, being less densely populated - hence demand has been strong.
- Interest rates have never been lower and although loans have been, at times, more difficult to secure, the planned easing of bank loan requirements together with the growth in financing from second tier lenders (rather than the big four) will positively impact the ability of buyers to secure finance.
- Decreasing returns from stock market and super accounts means that property continues to offer a more attractive investment option for many people. Supporting this is the fact that investor rental returns have stayed strong even in the Covid 19 environment!
Although border restrictions have meant minimal activity from interstate buyers, the local market has certainly filled the void! But now that borders are beginning to relax, we have seen an immediate upturn in enquiries, signalling more positivity for our local market.
Undoubtedly, negativity in the media predicting a steep decline in property prices (generally in relation to the Sydney and Melbourne markets) has had some impact on potential local sellers. The net affect being that many have held off listing their homes, causing a shortage in available stock.
In summary, currently we cannot satisfy both pent-up buyer demand and the increase in enquiries we traditionally field at this time of the year. This is evidenced by the high numbers of buyers attending our open homes with competition driving prices up and properties selling above expectation with multiple offers in a short period of time.
Market conditions like this may not last forever! We are living in an uncertain world and it is difficult to predict the future or the impact once the Government stimulus winds back.
"However, if you are thinking of selling", says Murray, "now is a great time to give us a call. On top of all of the above, the end of year rush is upon us with buyers out there looking to secure their new home and be settled in before Christmas".