The market softening (or at least calming down to a more sustainable level) has been predicted for many months now.
Several times this year, we’ve thought that the incredulous run of increasing median house prices must come to an end…only for the market to laugh in my face and explode some more. But we’ve noticed a few things over the past couple of weeks that has given us more reason to question whether this golden run is abruptly coming to an end.
Still, within the past few weeks, we’ve made some incredible sales…still at prices we could not have predicted…and many other agents have as well so why would we feel more assured than ever that things are about to change?
Let look at a few reasons…
- We’ve been monitoring the number of buyer enquiries on our new listings for a few weeks and there’s no question that there are less enquiries now than there were only several weeks ago. The number of enquires is still well above ‘normal market conditions’ but no-where near where they have been recently.
- The ‘urgency’ of many buyers appears to have somewhat subsided. Over the past few months, we’d list a home for sale and we’d be inundated with buyers grappling to see it within 24 hours of being listed and certainly prior to the first open home. We’re still receiving a few of these now but again, no-where near as many as we were several months ago.
- Online hits have certainly decreased by as much as 40% on what they were over the past few months. Whilst some properties are always more popular than others, the difference between properties we listed a few months ago and very similar properties we’re listing now is quite telling.
- There are definitely increasing numbers of new homes being listed to the market in many areas right now. Sure – there are some locations that are still significantly tight but as a whole around the North side of Brisbane and outer areas, there are more properties coming to the market than we’ve seen in a long while.
- The banks are rapidly increasing their ‘Fixed Rates’ and given lending criteria is tightening a little (with more tightening to come), affordability will fast become an issue if it hasn’t already.
- And finally, the average number of days a home is ‘on the market’ before it is sold has just started growing.
We’ve spoken to a number of other agents in many different areas of South-East Queensland who have all provided an eerily similar synopsis of what they are experiencing and this week, we’ve sought out the opinions of a number of property experts that have their ‘ear to the ground’ better than we do…and they are (without exception) all of a similar view.
The opening of the borders could mean a slight influx of sales as some of our Southern neighbours might now have a clear pathway to paradise but from what we’ve experienced, many of them have been purchasing with the help of friends and family who are already up here, so we’re not sure if the border openings are going to create the stampede like many are expecting.
There are some markets that might continue to see some explosive growth for a while such as the Sunshine Coast and numerous seaside coastal towns heading north might still continue growing at a rapid rate well into 2022, but as far as Brisbane goes, we think the golden run might be over.
Remember, if you need any help or advice, we are just a phone call away.
All the best, Simon.
Source: My very good friend Michael Spillane