Scene Set For Strong Festive Season
The RBA has sat on its hands for 130 months straight without an increase in rates, during which time the housing market in Brisbane and our coastal regions has gone from strength to strength. There has been many moving parts in the housing boom not just record low interest rates, we have seen a shift in preference towards suburban housing (work and play at home), large government incentives for first home buyers and home builders and record levels of interstate migration to the sunshine state.
Most economists don’t expect the RBA to move immediately on rates, in fact we may not see any movement until 2023. Given the RBA’s apparent reluctance to move on rates (the RBA has stated it won’t adjust its policy based on the housing market), borders opening from mid-December and stock levels remaining low, we don’t expect to see a let up in buyer activity over the festive season and into the new year.
2022 will see the market move from red hot to hot. Buyer fatigue and rising vendor expectations will play its part as will the spectre of interest rate rises in 2023 throwing a slight shadow across the market.
The major banks are predicting the Brisbane market will continue to rise in the vicinity of 5% to 9% in 2022, outstanding growth in anyone’s books but modest by 2021 standards.
Some interesting trends emerging in the past six months:
- Investors returning to the market off the back of robust rental yields and record low vacancy rates. We have seen an increase in demand for quality inner city apartments with the emphasis on proximity to transport and educational facilities.
- Demand for rental properties continues to climb, tight rental stock are seeing prices climb. The vacancy rate for the quarter ending in September 2021 was at just 2 per cent.
- Owner’s pulling the handbrake on major renovation plans amongst soaring building costs and delays across the construction industry. This will lead to higher demand for near new or recently completed projects, ‘walk in ready homes’ for busy professional families are high on the shopping list.
- Engagement of buyers agents, many busy professionals are seeing real value in hiring professional property advisors to negotiate and identify opportunities in a competitive market place.
We are pleased to report that our property management service has been wonderfully received by many of our existing clients. You can now trust Dixon Estate Agents to handle everything that relates to buying, selling and managing your property. That same attention to detail, transparency, energy for results and professional behaviour is what you can expect when it comes to us finding and keeping tenants for your properties, as well as managing all of the ‘noise’ that comes with it.
Well the countdown is on and we have always found the market remains extremely active right up until Christmas Eve, with the border reopening to our Southern neighbours from 17 December our strong feeling is there will be no traditional holiday season lull. Our office will be working across the holiday season so if we can assist with any of your real estate needs, please don’t hesitate to reach out.
