What a year it’s been in real estate! R&W Coolum has seen an extraordinary number of sales, with record-breaking sale prices in many streets and unit complexes. As we approach the end of 2021, the questions we are asked constantly are; “When is the current market surge going to end?” and “What is the market going to do next year?” Read on to find out our thoughts about what lies ahead for the Sunshine Coast real estate market in 2022.
The Market in 2022
There are 3 factors which we believe will continue to support the current increase in the market. Interest rates remaining at record lows, the state borders opening, and a large number of expats coming home to relatively covid-free Australia from overseas looking to buy property.
Government Intervention
The government has tried to slow the rapid growth of property prices by increasing the buffer applied to property loans from 2.5% to 3%. When lending money, a buffer is typically added to repayment calculations to ensure that repayments can still be met should interest rates rise. This 0.5% increase to the buffer affects borrowing capacity by approximately 5%, meaning someone who previously could have borrowed $500,000 can now only borrow $475,000. This does not appear to have had any effect on the Sunshine Coast property market.
Selling in 2022
In terms of who is going to do well in the property market in 2022, the news is good for both sellers and buyers. We believe home owners who are thinking of selling in 2022 should get their properties on the market sooner rather than later. Definitely in the first half of the year. Anecdotally we have noticed a slight increase in the number of days a property is on the market before selling. Instead of selling after the first open home, it is now sometimes taking 3 or 4 open homes to secure a sale. This is of course still a very positive result!
At R&W Coolum, we would love to talk to you and provide you with a current market appraisal on your property. We promise you will be surprised to discover just where the current market value is sitting!
Buying in 2022
With life returning to ‘normal’ as vaccination rates hit 90%, more sellers will be putting their properties on the market. This will make life easier for buyers who have been frustrated by the lack of choice. Now is a good time to buy because we predict the market still has some upside to come, at least through to March or April 2022. Meaning if you purchase now you will benefit from this immediate increase in equity.
If you are looking to find your piece of paradise in Coolum Beach and the surrounding suburbs we would love to give you some hints on some of the amazing properties coming onto the market.
Make it happen
This is indeed an exciting time in real estate for both buyers and sellers. Please get in touch with one of our trusted professionals today!
Coolum