Adam Empringham,
Director of Sales at Image Property.
Why buyers think now is a good time to purchase property
[lwptoc]By Adam Empringham, Image Property
This time last year the percentage of buyers who thought it was a good time to purchase was lower than it is today.
That sort of sentiment might seem a little weird – given there has been a global health pandemic between those two points in time – however, there are a number of reasons for the overwhelmingly optimistic outlook.
According to Finder’s Consumer Sentiment Tracker, about 67 per cent of Australians think that now is a good time to buy property – up from 42 per cent in April last year.
Plus, the percentage of buyers who think it is a good time to buy in Queensland is above this national average at 69 per cent of survey respondents.
The survey also found that those expecting house prices in their area to significantly increase in value is also at an all-time high at 19 per cent – up from just five per cent in September last year.
Those who expect property values to “somewhat increase” has jumped to 44 per cent from a low of 18 per cent back in April.
Buyers already out in force
Over the Christmas period, buyers were out in force across Southeast Queensland with multiple offers commonplace in many locations.
There are myriad reasons why markets across the southeast corner have continued their strong conditions from last year.
One of the main factors is that there remains a constrained supply of property on the market in many locations.
In Brisbane, stock on market remains below historical averages, however, demand has ramped up from local as well as interstate buyers.
This supply and demand imbalance is resulting in rising property prices across the Queensland capital.
According to SQM Research, the asking price for houses in Brisbane has jumped nearly four per cent over the past year, with the asking price for units also up by 2.4 per cent over the same period.
Coast market soaring
On the Sunshine Coast, the situation is even more extreme, with stock levels the tightest they have been for more than 10 years.
This situation is completely contrary to what many doomsday commentators suggested would happen when the pandemic hit early last year.
Rather than a flood of properties hitting the market because the coast’s economy was seemingly under threat, the opposite has occurred with the market becoming even more tightly held and therefore infinitely more desirable.
This situation has resulted in strong sales results for Sunshine Coast vendors with much more demand than supply occurring.
Indeed, according to SQM Research, asking prices for houses on the Sunshine Coast have soared nearly eight per cent over the past year, with asking prices for units also up by an impressive seven per cent over the same period.
As the Finder survey found, it’s clear that the Queensland market is starting the new year from a position of strength.
Savvy sellers and buyers will no doubt not hesitate to make the most of the overwhelming positive market conditions.
