Where To Now For The Gold Coast Property Market?
After raising interest rates to a 12 years high of 4.35% in November 2023, the RBA kept them on hold at its meeting on 5 December 2023. This is very good news for home owners with mortgages and the decision most likely reflects the fine line the RBA is walking between needing to keep inflation under control but not burdening borrowers to the point that the economy transitions in to a recession.
So, what direction is the property market likely to take in the coming months? There is no easy answer especially when we can’t be sure if the RBA will raise rates further. And a wary eye needs to be kept on the potential impact of global conflicts on economic activity.
While there is little doubt that a significant number of property owners are now experiencing some degree of mortgage stress, it’s unlikely we will see a sharp decline in prices in the coming few months. That said, we are going to be in this elevated interest rate environment for longer than most of the major banks had anticipated and this is weighing on economic and property market sentiment. We are already starting to see an increase in properties listed for sale and if you add to this a reduction in the number of buyers, the result will be a more balanced buyer/seller market (for the past 12 months buyer demand has far exceeded available properties).
While you’ll see from Herron Todd White’s “Property Clock” below that the Gold Coast has passed its price peak, it’s reasonably clear that our market continues to offer a high degree of stability with strong buyer demand. So, for those who are considering selling and who want to avoid the impact of future interest rate rises, reduced buyer demand etc., we are recommending that now is STILL a very good time to do so.
If you have any questions about the matters referred to here, or you would like to have a confidential discussion about how we can help you with your sale or purchase of a property, please contact Peter Turner.