Issue 2 | Thursday 26 January 2023 | How are interest rates impacting buyers in 2023?
Hi Andrew Bell and coming to you today from The Event 2023. This is our 31st Event which is now become an iconic feature of the national real estate market. It’s the largest in-room auction held by one real estate office anywhere in the country each year. We are proud that it’s here on the Gold Coast and conducted by the Ray White Surfers Paradise Group.
Everyone is fascinated to see how the real estate market starts off in January 2023, and I have to say, that we have been caught a little bit by surprise by just how strong buyer activity has been. From my sources with Gold Coast Tourism, we will be reporting record numbers of visitors to the Gold Coast, and unsurprisingly a significant proportion of those visiting the Gold Coast over the past month came here with the purpose of not only having a holiday but taking the opportunity to look at Gold Coast property to buy.
The number one reason continues to be lifestyle choice. In years gone by, we were all quite parochial and if we are born in Melbourne or Sydney we tend to live there for life and to gravitate around a certain area, also finding work in close proximity to home. Due to the pandemic people really questioned that thinking and chose lifestyle choices such as moving from congested cities to less congested regions, buy where there is more affordable real estate, weather conditions, and you might be surprised to know, many predict that there will be ongoing pandemics moving forward. People want to be in areas that don’t suffer from substantial shutdowns and restrictions. South-east Queensland seems to be the number one location, and the Gold Coast above all other areas in south-east Queensland.
Buyers don’t seem to be overly concerned about interest rates. Below is a graph showing the journey of interest rates, and as you can see, it clearly shows that where we are now is just a movement away from the emergency settings that were put in place for Covid, and back at levels well below the peaks of 2011 and it is more in keeping with the normal interest rates of the past decade or so. For people buying now, they know they are close to the top of the real estate cycle and will just buy by borrowing to the limit that they can afford to meet repayments. There is no lack of interest in buying, it’s just adjusting where and what price bracket.
Most are suggesting that they understand that we are near the top of the interest rates cycle and that 2023 will be a bumpy year, but are getting the view that once inflation starts trending down there will be some easing off of interest rates.
What stands out overwhelmingly is that there is an enormous belief in the Gold Coast. So many of the buyers from interstate have friends who have moved here over the past 3 years and just rave about how much they love living here, and it’s what has triggered them to make their decision to move here as well. Our locals also share that same confidence in the region and can see for themselves that there is an acute shortage of property on the market for sale.
This Event continues to stand out as the most unique auction in the country. Others have tried to imitate it, but I think they realized that imitation is the greatest form of flattery and that rather try and copy do something more original themselves. The Event continues to grow in stature year after year. We have had over 276,000 viewings online, 5,153 enquiries of Event properties, and an amazing 2,443 physical inspections. Clearly, we are going to have a very large number of buyers who have missed out on properties here today, so if anyone is thinking of selling on the Gold Coast give us a call now and take advantage of the large pool of disappointed buyers who are ready, willing and able to purchase.
I can give you a lot more stats about our market moving forward, but don’t forget I have a fascinating interview coming up with Australia’s leading real estate Economist. I will continue to give you the most up to date and accurate information about the property market. With over 20 people in our national research team, you can be assured that the best information about the real estate market will be provided to you throughout the year.
Ok, I must jump back up on the rostrum and bring together buyers and sellers and fulfill their dreams as they make their move in real estate. I will be with you in a fortnight’s time.
Andrew Bell, OAM
Chief Executive Officer
The Ray White Surfers Paradise Group
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