What is happening?
The number of houses for sale in the 4209 postcode suburbs has plummeted to almost half the number that was available at the same time last year. Why? How does this affect you?
The chart above shows data from SQM research for the past year. In March last year, there were 1214 homes for sale, down to just 642 in March this year!
The average Days on Market (DOM) in Pimpama and Coomera are usually higher than average suburbs due to the higher number of listings by builders looking to sell house and land packages. These traditionally sell more slowly or have the sale status updated more slowly than other for sale listings. Also, the Days on Market statistic is based on a 12-month rolling average. What this means is that when the average DOM also plummet within a couple of months, there has been a huge shift in the property market.
Why is this happening?
There are far fewer Coomera, Pimpama, Upper Coomera and Willow Vale homeowners wanting to sell. Why? Possibly for the same reason that there has been an increase in Sydney and Melbourne residents relocating to our suburbs. We have been relatively less affected by the COVID restrictions. Also, if you do need to be isolated or limit your movement in the community, our suburban homes with space and great climate are the place to be! Existing residents don’t want to leave because they know they live in a great place.
On the other hand, people have been reconsidering where they live and how that affects the lifestyle and security of themselves and their families. The ability to work from home full or part of the time has encouraged this soul searching. People are now looking for family and lifestyle friendly suburbs with the convenience of modern and necessary amenities. Coomera, Pimpama, Upper Coomera and Willow Vale fulfil these requirements beautifully.
In a nutshell, fewer people want to sell, and at least as many, if not more, want to buy here. The result is that the number of homes available for sale has plummeted, days on market have fallen, and prices are rising.
How does this affect you?
If you are buying or renting, be prepared to wait in a queue for inspections, visit several properties and make an offer or application quickly. Have your mask and hand sanitiser with you to protect the health of you, your family and the people who live there. There will be restrictions for you to respect. You must give your contact details for contact tracing. (Hey, let’s get rid of this thing!) A good agent will be able to tell you about comprehensive precautions they take to protect the owners, residents and people inspecting the home. This is definitely a sellers and investors market in the northern Gold Coast suburbs. Some prospective tenants are offering higher than asking rent to secure a home.
If you need to sell your home or investment property, make sure you select an agent who has the processes available to capitalise on buyer competition to get the best price as well as a relatively quick sale.
On the other hand, if you are not selling and are very happily keeping your home or investment property, why not call Michelle for a free, no-obligation market appraisal, just so you know what your investment has grown to. Michelle would love to help you stay happy with your home or investment for many years to come. Just call her on 0457 630 552 to ask her how.
When will this change?
These are unpredictable times. (Notice I avoided that overused “unp” word?) When Australia first experienced COVID and the necessary restrictions, some predicted that property values would fall by up to 30% across the country. Well, that didn’t happen. Most areas have experienced fairly stable prices and rents. A few areas have had price and rent falls – mainly inner-city units – but only a few per cent. Other areas such as the Gold and Sunshine Coasts have had increases in both demand and prices.
Part of the rationale for those who predicted a massive price fall was that the lack of immigration would reduce demand. However, this seems to have been tempered by Australian’s need for the security of owning their own home helped along by the government’s grants and stimulus packages. Also, there is little evidence of overseas investors selling their Australian properties.
What do I think will happen next? That is a loaded question because life is certainly unpredictable at present. The stimulus grants and incentives are being phased out. Will there be more? Don’t know. My guess? In the northern Gold Coast region, we will gradually settle back to what used to be a “normal” buy and sell cycle. I expect there will continue to be differences between cities and regions as Aussies adapt to the changes still to come in health and the economy. In the short term, I expect that the family and lifestyle friendly northern Gold Coast will continue to have higher demand from buyers and relatively fewer owners and investors wanting to sell. The laws of Supply and Demand dictate that this will result in higher home prices as well as higher rents.
What should you do?
In short, real estate is a long term investment – ups and changes will happen over several years. Please seek advice from a professional financial planner who can advise you on your specific circumstances. My advice is don’t sell if you can find another way. (Yes – a Real Estate Agent advising against selling! We will give you the advice that is best for you, not us.) The exception to this is if you have invested in a short term boom town – a speculative, not long term investment. In this case, sell before the boom ends. However, this doesn’t apply to most properties on the northern Gold Coast. If you are being transferred for your job but expect to come back – consider renting out your home so you still have it when you return. Or, if you need to sell to upsize, downsize etc, try to sell and buy in the same market conditions.
However, if you NEED to sell, then sell when you need to, but make sure your home is presented well and you have an agent you can trust to give you the best advice as well as represent you and your home well to get you the best price with low costs. If you need to sell, now is a good time simply because there are more buyers than sellers. When will this change???
Call Michelle on 0457 630 552
to ask us how we can help you sell for the
Best Price + Low Costs = More for You
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