- Given the 0.25% cash rate rise last month, it is likely we are near the peak of the monetary policy cycle
- There are fewer listings for sale across SEQ Queensland
- The ideal time to sell your property is always the best time for you personally
The latest interest rate rise of 25 basis points in early November is hopefully a sign that the interest rate hikes are nearing the peak of the current monetary policy cycle.
However, across the southeast of Queensland, we still see healthy market conditions with solid results for vendors – whether selling via private treaty or auction.
According to our friends at Apollo Auctions, the auction clearance rate in Brisbane improved in September – up to 70.83 per cent from 62.70 per cent the previous month – as buyers and sellers were galvanised by the interest rate environment and opted to make their moves sooner rather than later.
Fewer listings for sale
Something very interesting is also happening in Brisbane and the southeast, with no signs of an oversupply of listings on the horizon.
In fact, according to SQM Research, the total number of listings in Brisbane reduced 3.6 per cent in October and was only up 1.5 per cent over the year – let’s not forget that last year saw an undersupply of properties available for sale, which was one of the reasons why we had such strong property price growth.
Brisbane
[Select part of the chart to zoom in on various years, and ‘reset zoom’ button to return]
This fall in listings in October is quite unusual because we generally see an increase due to the spring selling season. However, this year, it’s clear that property owners have adopted a wait-and-see approach, which may not be in their best interests over the long term.
That’s because dwelling values across the southeast continue to produce steady results, contrary to Sydney and Melbourne.
The latest Home Value Index from CoreLogic shows that the median house value in Brisbane remains 1.5 per cent higher year-to-date and is eight per cent above the price in October last year – coming in second for all capital cities behind Adelaide over the year.
Similarly, the Brisbane median unit value has performed even better with a 7.7 per cent increase in the year-to-date and 10.7 per cent over the year ending October – again, the second-best result of all capital cities.
When is the best time to sell?
The ideal time to sell your property is always the best time for you personally.
It doesn’t matter what the market cycle is doing because you will generally be trading in the same market conditions. That is, softer market conditions may mean that you have to pay less for your next home.
While the interest rate hikes are slowing, no one can say with certainty what the future holds for real estate markets.
There have been various forecasts – and let’s face it, most of these predictions are usually wrong – but they can motivate buyers and sellers to sit on their hands when the timing is right for them to buy or sell.
With a low volume of property listings currently for sale and a solid rental market, it’s clear that Brisbane and the southeast have the potential to record stable market conditions for some time.
Since no one knows what the future will bring, I advise you to consider whether your reasons for not selling now are holding you back when they don’t need to do so.
