Why we believe the Sunny Coast are the luckiest property owners around!
You would have to be living under a rock to have avoided all the doom and gloom in the media recently when it comes to inflation, interest rate rises and the property market shifting. It really can be disheartening to hear but because we are in the industry, we have a very different perspective. Read along today to find out whey we think the Sunny Coast buyers and sellers are lucky in comparison to other locations around the nation.
Firstly, let’s consider property prices. The latest data from CoreLogic showed local house values declined by 11.8% to a median of $972,891, since their peak of around $1,400,000 in April of 2022. The fall in housing prices is evident across the country as we see interest rates rising and consumer confidence dropping. We must remember though, that on average property prices remain 35.5% higher than they were pre-covid, where the average house was only worth $723,103. That is incredible growth in such a short time, making property owners on the Sunshine Coast some of the luckiest in the country.
While the decline in property prices and the increase in interest rates it is certainly hurting those who purchased at the peak of the market and borrowed at full capacity, anybody that has owned their property for 5 years or more remains in a position of substantial growth, even now. Experts predict that while values could continue to fall as interest rates rise, once we reach stability on interest rates, we will again see the property values stabilise. One key point to consider is that anybody looking to sell in this market, is also looking to buy in the same market, so any downturn in pricing you experience as you sell, you will see benefiting you as you make your purchase. Either way we look at it, Sunny Coast property owners are in a great position to buy and sell when making savvy real estate decisions.
Now, let’s consider property owners that have investment properties. Rental markets across the Sunshine Coast remain tight with around 1% vacancy which is unprecedented. While this offers little relief for renters or prospective tenants, it does mean that rental rates will continue to increase throughout 2023, offering a better return on investment for those with property portfolios.
The demand on the Sunshine Coast continues to grow even post-covid, so we are lucky in regards to the fact that our property values are somewhat protected. They will of course ebb and flow as economic factors impact them; however they are more protected than other urban and densely populated areas. Due to our picturesque surrounds and the convenience of being a small city by the water, there will always be people wanting to visit and migrate to the Sunshine Coast purely for the lifestyle. With these ingredients there will always be a need for property, whether it be short or long-term rentals, or those looking to secure own their own slice of heaven, we can rest knowing we are in one of the most sought after locations in the state.
At First National Lifestyle, we love where we live and love being able to provide excellent service to Sunshine Coast clients that need sales or property management services. We achieve excellent prices because we believe in the value of the property, and we secure the best tenants while managing any issues that arise without all the fuss. We are the local agency that truly put YOU first! If you need real estate advice of guidance then reach out to us today, we have a team of experts waiting to help you achieve your real estate goals in 2023.