Now that the federal election is over you may be wondering what’s in store for the Gold Coast property market in 2022 and 2023?
Regardless of who won the election, rising interest rates will be a key element that shapes economic outcomes and the future of the housing market in 2022/2023
The downward house price trend will not change despite a new federal Labour government being elected. Several well-informed leading economists are predicting the property market will continue to soften despite new policies aimed at helping first home buyers and low-income earners. Multiple major financial institutions are predicting property prices nationally will flat line by the end of the year and depending on how many interest rate rises occur, some experts are predicting we could see a drop by 8 to 10 per cent (maybe more) in 2023.
Will we see a flood of properties hitting the market as a result of these interest rate rises?
Because there has been strong price growth during the pandemic, those who purchased a property more than 12 months ago have seen an increase in the equity and capital in their homes. Those who want to benefit from the existing higher prices will decide to put their property on the market before prices start to fall. This in turn will increase listing numbers and competition.
What effect will this have on the property market?
The reopening of international borders and the continued, if somewhat slower migration from the southern states will help to provide some economic support over the next couple of years for the Gold Coast Property Market. However, the reality is that that rising interest rates are utterly unpredictable whether by “experts” or “markets”, and this will certainly have an impact on property prices.
The values on the Gold Coast and in particular Elanora have had varied growth over the last couple of years. If you are keen to know the current market worth or your property I am happy to give you an updated appraisal and information about the current property market.
Alex Hocking
Elanora Realty Principal
Phone: 0403 048 089
Email: alex@elanorarealty.com.au
