We expect demand for houses for sale, Sunshine Coast and especially Peregian Beach real estate to remain high.
Why? Even, despite the recent interest rate rise?
Normally, interest rate rises dampen the market. The more expensive the property, the higher the repayments. So demand slows a little, right? And prices fall accordingly.
We’re the first to agree with this, but is it necessarily going to happen now, straight away?
In other words, is a hot Sunshine Coast real estate market about to become cold?
On average, here is the difference in home loan repayments since the 0.25% rate rise -
$100,000 = an extra $65 per month.
$750,000 = an extra $98 per month
$1,000,000 = an extra $130 per month.
On these figures, as experienced real estate agents, Sunshine Coast, we’d calculate that the market is going to remain buoyant.
A recent article in the Sunshine Coast News made the point that “there was strong demand to live on the Sunshine Coast” (and that’s not going away!) and that “there was a severe undersupply of housing to meet that growing demand.” (that’s not going away either!).
These are both key factors in driving up prices. For buyers and renters!
We are not wanting to lessen the impact that the interest rate rise may have on your financial situation. Everyone’s circumstance is different. But we will say that the current rate, (May 2022, Comm Bank Standard Variable 4.55% per annum) is where most would have predicted it would be once rates ‘returned to normal’.
The big question is “How many more rate rises are in the pipeline?” and when the increases finish how high will the interest rate be then?
If we reach the heady ‘double digit’ days of the eighties, a lot of people will suffer.
And the market for sellers will drop, as will prices. A seller’s market will become a buyer’s market. But that is potentially years away.
Now is the time to sell. It’s a sellers market and as we noted, demand on the Sunshine Coast is high, and will be into the foreseeable future.
No matter the market, no matter your situation you can always expect a great deal more with Steel Realty Peregian Beach…more market experience and more care in formulating the best sales success strategy for you.