Has the Queensland property market peaked?

The Queensland property market is cooling

Dwelling values continued to rise nationally over the last quarter, but the growth charts have been showing signs of the market cooling in recent months. Auction rates have also been strong but are showing signs of slowing down. 

The two main drivers for current price growth are historically low interest rates and stock levels which are around 30% below the rolling 5-year average. As you can see in the graph below, we are currently sitting at an almost unprecedented stock supply shortage for this time of year. Sales volumes are 30% above the 5-year average and stock is currently 29% below the average.

It is absolutely inevitable we are going to see a rise in the number of listings coming to market, particularly when restrictions ease. It is unlikely that buyer demand will rise at the same rate. 

According to CoreLogic, the annual rate of growth in the housing market is currently 11 times higher than the rate of wage growth. The current rate of growth is also 3.6 times higher than the 30-year average for the housing market in Australia. The major banks have also indicated they are certain to raise interest rates in 2022 or 2023.

In my opinion, it’s a safe bet to assume the current level of buyer demand is coming to an end and the market is either at its peak, or very close to it.

What to do before the market peaks

The housing market has outperformed all expectations, in all sectors of the market during these unprecedented times and homeowners have made significant gains in almost every market nationwide.  

What is a virtual certainty is that stock levels are going to rise back to normal levels soon. 

If you have been considering selling, your window of opportunity to cash in on the current market demand is coming to an end.

If you would like a confidential discussion about your property goals, please get ahead of the market and reach out to us today.

 * Statistics and graphs supplied by CoreLogic, August 2021.