Why Coast home prices have gone up recently in the face of continued interest rate rises

Home prices on the Sunshine Coast have climbed during the past three months, after an extreme up-and-down ride in recent years.

Property values have increased 1.1 per cent on the Sunshine Coast, and 0.13 per cent nationwide, quarter on quarter, according to property experts PropTrack.

There was a stunning rise in prices around the region and beyond after the onset of COVID, followed by a decline, before the latest mini resurgence.

Senior economist Eleanor Creagh told Sunshine Coast News that “home prices have now reversed that downward trend”.

“The price falls eased towards the end of last year and they’re actually now moving upwards,” she said.

“What we’re seeing on the Sunshine Coast is very much what we’re seeing on a national level.”

Ms Creagh said the latest increase was due to several factors.

“Downward pressure from (10 straight) interest rate rises is being offset by the fact that there is a limited supply of properties available for sale, which is concentrating interest and underpinning home prices,” she said.

“We’ve also got positive demand drivers stemming from incredibly tight markets and a strong rebound in immigration which, combined with that limited stock on the market, is buoying home values.”

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Despite the quarterly rise, prices were still down 5.28 per cent on the Sunshine Coast for the past year.

The Reserve Bank board was scheduled to meet again on Tuesday.

Ms Creagh said property prices could continue to slowly climb in the near future.

“Headwinds remain. It’s possible we do see at least one further interest rate rise, and we know the full impact of rate rises already delivered is yet to be (completely) felt,” she said.

“But, at the same time, interest rates are approaching their peak and some of the uncertainty that buyers have experienced with borrowing capacity and mortgage servicing costs is reducing, so people will have a better sense of how far their budgets will go.

“And a strong rebound in immigration and tight rental markets will also continue to underpin home prices.”

The median home value for a house on the Sunshine Coast in March was $1.021m, while the median value for a unit was $771,519.

Auction results

4/9 McIlwraith Street, Moffat Beach

• Sold Prior to Auction for $1,700,000
• 2 Bed, 2 Bath, 1 Car
• Ray White, Andrew Garland

1 Tay Avenue, Caloundra

• Passed In at $2,025,000
• 2 Bed, 1 Bath, 1 Car
• Ray White, Andrew Garland

44A Eckersley Avenue, Buderim

• Passed In at $900,000
• 3 Bed, 2 Bath, 2 Car
• Ray White, Judy Wild & Lew Pottinger

15 Plantation Parade, Buderim

• Sold Under the Hammer for $825,000
• Land
• Ray White, Jake Loiero

167 Sippy Creek Road, Tanawha

• Passed In at $1,600,000; On the Market for $1,799,000-plus
• 7 Bed, 3 bath, 9 Car, Pool
• Ray White, Jake Loiero

87 Creekside Drive, Sippy Downs

• Passed In at $1,120,000
• 6 Bed, 2 Bath, 2 Car
• Ray White, Jake Loiero

6/9 Douglas Street, Maroochydore

Sold Under the Hammer for $597,500

3 Bed, 1 Bath, 1 Car, Pool

Ray White, James Goldsworthy / Luke Dunbar

6/10-12 Maroubra Street, Maroochydore

• Sold Prior to Auction for $570,000
• 2 Bed, 1 Bath, 1 Car
• Ray White, Will Van Den Dungen

220 Diddillibah Road, Woombye

• Passed In at $2,500,000
• 4 Bed, 2 Bath, 7 Car
• Ray White, Matt O’Grady and Alisha Galea

14 Greenlees Court, Palmwoods

• Passed In at $760,000
• 3 Bed, 2 Bath, 2 Car
• Ray White, Chevonne Rees

20 Taree Court, Kuluin

• Sold Prior to Auction at $820,000
• 4 Bed, 2 Bath, 2 Car
• Ray White, Kathryn Willshire

5 Cypress Street, Kuluin

• Sold Under the Hammer at $1,420,500
• 4 Bed, 2 Bath, 3 Car
• Ray White, Kathryn Willshire, 0437 434 648

450/180 Alexandra Parade, Alexandra Headland

• Passed In at $580,000
• 2 Bed, 1 Bath, 2 Car
• Ray White Pam Thomas and Sarah Olsen

61 Tepequar Drive, Maroochydore

• Passed in at $820,000
• 3 Bed, 1 Bath, 1 Car
• Ray White, Niall Molloy

1/307 Bradman Avenue, Maroochydore

• Passed In at $625,000
• 2 Bed, 2 Bath, 2 Car
• Ray White, Pam Thomas & Megan Murray

19/20 Beach Parade

• Sold Under the Hammer for $628,000
• 2 Bed, 2 Bath, 1 Car
• Ray White, Niall Molloy

15 Pittards Road, Buderim

• Passed In at $750,000
• 4 Bed, 2 Bath, 4 Car
• Ray White, Brodie Rogers

24 Amarina Avenue, Mooloolaba

• Passed in at $815,000
• 3 Bed, 1 Bath, 1 Car
• Define Property, Amarni Drake

44 Banfield Place, Maroochydore

• Passed In $1,030,000; On the Market for $1,350,000
• 3 Bed, 2.5 Bath, 2 Car
• Next Property, Courtney Paterson

Article source: Queensland Property Investor