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Insights into the Robust Real Estate Market Amidst Economic Uncertainties

By Andrew Bell

Issue 30 | Thursday 22 February 2024 | Insights into the Robust Real Estate Market Amidst Economic Uncertainties

Hello, Andrew Bell here, wrapping up amidst another heavy dose of rain. Despite the downpour, the city is gleaming with all our buildings washed clean, and our parks and nature strips lush with greenery. This is quite a departure from the usual brownish tinge we see at this time of year after a scorching summer.

Now, let’s dive into what’s on everyone’s minds – the real estate market. Not just here on the Gold Coast, but across the country, it’s been off to a robust start. Though conditions vary regionally, we witnessed the highest auction success rates in over two years just last week, hovering around record levels.

Here on the Gold Coast, our Event 2024 auction program marked a historic success. Nearly 100 properties have sold for $108 million to date, with some remaining properties finding buyers in the past two weeks. Ray White also had an outstanding week with a 100% success rate across 15 auctions, drawing an average of 11.8 bidders per property. These figures are truly exceptional.

This surge in buyer activity is occurring against the backdrop of high interest rates and living costs. While many anticipated this to curb demand, it hasn’t materialized. Despite record numbers facing mortgage stress, property values have held steady or even increased, providing borrowers with equity cushioning and allowing banks to offer support, whether through loan extensions or reduced repayments.

However, the cumulative impact of rising interest rates and living costs is taking its toll, draining savings and placing people in challenging situations.

There is some optimism on the horizon though. Tax relief is around the corner, offering additional financial breathing room for many. As for interest rates, speculation abounds, with the Reserve Bank keeping a close eye on inflation. While some predict a potential drop in rates by mid-year, consensus suggests relief may not arrive until later, allowing people to plan for a degree of respite in the coming months.

Predicting the market’s trajectory remains elusive amidst numerous variables. One key factor to monitor, particularly in times of economic slowdown, is unemployment. Signs of job shedding are emerging, contributing to a slight uptick in the unemployment rate. While not alarming yet, it’s a trend worth watching as it impacts consumer confidence and spending patterns.

Despite these uncertainties, one constant buoying the real estate market is population growth outpacing housing supply. This persistent demand-supply imbalance continues to exert upward pressure on prices across rental and purchase markets.

As we transition into autumn, it’s worth considering the opportune moment to sell, especially with our upcoming autumn auctions building on the success of our recent events. Your chance to capitalize on a thriving market shouldn’t be missed.

Thank you for tuning in, and don’t forget to secure your spot for our upcoming Business Meets Sports Lunch featuring inspiring stories from Harry Triguboff and insights from Anna Meares. With over 700 attendees already booked, seats are filling up fast. See you there!

Warm Regards,

Andrew Bell, OAM
Chairman
The Ray White Surfers Paradise Group

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