The ‘Great Migration’ may have stabilised, but housing competition remains stiff

51/110 Sixth Ave, Maroochydore - Reuben Park, Ray White Maroochydore

Interstate migration to the Sunshine Coast appears to have slowed, but property prices are still competitive.

Chat to any Sunshine Coast local and you will hear the housing competition remains fierce - but can we still place the blame largely on population migration?

Not according to the recent stats.

Across the first three months of 2023, interstate and international buyers have fallen from 29.9% to 13.8%

With the pandemic shepherding a massive influx of migrants to the Sunshine Coast suburbs, this drop will provide welcome relief for locals. 

However, there is still a long way to go before the market eases, especially for renters. While fewer people are searching for a sea change, occupancy rates remain at a tight 99%. Homes are spending just 13 days on average on the market before being snapped up by eager renters who are willing to pay more than ever before.

“Rents across all Australian capital cities are now rising at their fastest pace ever recorded, driven by an imbalance in supply and demand. This imbalance is now flowing through to house prices. There’s a shortage of properties for sale, as well as a shortage of new homes being built.” says Ray White Chief Economist Nerida Conisbee

This trend is set to stay with a report released by the National Housing and Finance Investment Corporation (NHFIC) estimating there will be a shortage of 100,000 homes over the coming four years in Australia. For aspiring landlords looking to get into the rental market, this is the time to do so.

Local buyer demand remains high with over 5,400 inspections taking place in the first quarter of 2023. These numbers reached their peak back in July-September of 2022 with over 6000 total inspections.

However, average time on the market has more than doubled compared to the previous quarter, increasing from 31 days to 65 days.

Dan Sowden, Director of Ray White Maroochydore, suggests the reasons behind this increase are twofold. 

“The first reason is that the negotiations between buyers and sellers are taking longer due to an emerging difference in price expectations and secondly; buyers are requiring longer finance terms than usual. What compounds this matter more so is that if the conditions are not being satisfied, then contracts are terminating and then a second or even third contract is required before the property is effectively sold.”

According to Ray White Coastal Living Network's Quarterly Market Monitor, despite homes spending longer on the market, the 90 day sale success rate for the network’s auction campaigns have remained strongly above industry average at 52% clearance rate and 78% success rate from the 153 auctions conducted in the Quarter.

Auction campaigns are currently attracting double the number of buyer enquiries, with bidders increasing to an average of 3.2 per auction and paying over 5.5% more then the highest offer received prior to the auction.

While housing prices may have stabilised since their 2022 peak, we can expect to see an increase later in 2023.

“Assuming that the rate of price growth continues as it has over the past three months, Australian median house prices will be back to where they were at the peak of 2022 in September 2023.”- Nerida Conisbee

Read Coastal Living Network’s Market Monitor HERE

Coastal Living Network offices include: Ray White Maroochydore; Ray White Mooloolaba; Ray White Kawana Waters; Ray White Buderim; Ray White Nambour

Press Achieved: Sunshine Coast News

Title: Interstate migration to Coast dwindles but prices stay competitive

By: Steel Taylor, 10 MAY 2023

Read more: https://www.sunshinecoastnews.com.au/2023/05/10/interstate-migration-to-coast-wanes/

Smith Madden Creative Agency represents Ray White Maroochydore as their designated Sunshine Coast PR Agency.

Tags: Sunshine Coast Property Market, Queensland Property Market, Sunshine Coast Real Estate Agency, Ray White Maroochydore, Smith Madden Creative Agency, Sunshine Coast PR Agency, Sunshine Coast Marketing Agency, Sunshine Coast Public Relations.