Local Market Sentiment Survey

June 21, 2021

June 2021

Firstly, some thoughts about the uncertain art of predicting the value of something, and why we’re so pleased to be able to produce this very first Local Market Sentiment survey for our Caloundra market.

The question of value ultimately boils down to: “Something is worth what we think it’s worth”

It’s how we feel about something that determines its value. A very visible example is the Australian Dollar’s value, because every night in the news, the exchange rate is published showing the price currency traders are prepared to pay for our dollar. Pork bellies, tulips, and yes… properties…are ultimately valued using the same thinking. It’s our sentiment that creates the demand combined with the scarcity value of Supply that ultimately sets the value of things.

In our inaugural Local Market Sentiment Survey for Caloundra and surrounds, we had almost 100 people respond to the question below, and the results are in!

 

 

In a nutshell, in a year from now…

  • 41% of all respondents expected some price increases.
  • 25% of all respondents expect the market to increase sharply!
  • 23% of all respondents expect the market to fall a little.
  • 10% of all respondents expect the market to stay about the same.
  • Just a single respondent thought the market would fall sharply.

 

Many respondents made were happy to make a quick comment… here’s an unabridged collection:

*Anywhere close to the ocean will increase in value, especially with people escaping Southern states

*1.Covid causing people to work from home. 2.Those in Vic and NSW like the coast living. 3.Eastern side of Nicklin Way prices seems to be higher. 4.We have Hospital, doctors, shopping centres, schools, university, all one needs. I think prices will remain high for a few years yet.

*Some people in construction are calling this recent period a profitless boom. Builders locked into fixed priced residential contracts are in trouble with cost blowing out to $30k (Spec homes, the bottom of market stuff, more in quality homes). Builders are offering $10k to owners to rip up contracts. That is what we are seeing.

*I think interstate & overseas buys will continue to push the market up

*Depends on the fear of missing out on buyers. It seems like a lot of renovations are taking place at the moment so maybe supply may increase.

*, let the prices keep rising!

*Covid has impacted people and made them appreciate how good life can be living on the Sunshine Coast.

*The adage …What goes up must come down!!!!!

*I think property prices will continue to rise in Queensland as we are still significantly behind other states. Given the significant number of migrants from overseas and other states coming to Queensland this will sustain strong growth in this state for at least another year.

*The increases are not sustainable and any upward movement in home loan interest rates will push home prices downward, probably dramatically…. many have over-borrowed.

*Current rise in QLD especially north of Brisbane has been out of normal Queenslanders price to buy and only those moving from interstate can afford to pay the prices. Totally unsatisfactory.

*We are not experiencing a bubble. Values are here to stay.

*I believe the market will settle as the onset of a slight interest rise is inevitable.

*Hoping they only rise a little from now

*I think prices will flatten but not fall

*There is still a lot of room to grow on the sunny coast because when you compare the proximity to the beach to the Gold Coast, the sunny coast represents value for money… especially for those cashed-up moving from Syd and Mel. the current prices will hold tight (or increase?) / become the new normal, sorry to say for those that weren’t in a position to buy pre-COVID. I always expected this, but not so quickly (COVID expedited what was the inevitable.)

*Expect 10% plus growth over the next 12 months

*estimates are 10% minimum

*I think they will probably sit for a while now, rising at a more normal pace, slower pace. I don’t think they will drop though.

*New hospital and infrastructure in the area

*the only way it up

* Market is quite hot at the moment and SC real estate will be affected by COVID

* Prices are ridiculous currently, and unsustainable. As a buyer (and other buyers I know), are refusing to pay the prices being asked. It has also made sellers hold off selling due to FOMO (on achieving a higher sales price), which means limited stock – and makes agents keep trying to sell for insanely higher prices (ultimately making the situation worse!). Anyone would be crazy to buy now, and most people realise this, so a drop in prices is inevitable. Agents will soon realise that to get more stock, they need to make more sales, and to do this they need to set more realistic and attainable prices (with FAIR value for money), which will entice buyers back, and obviously get the market more active again, and restart the cycle.

 

 

 

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