As we draw closer to the end of 2023, it’s a fitting time to reflect on the vibrant real estate market on the Sunshine Coast and contemplate what lies ahead in 2024. At the Ottiam Group, in collaboration with mortgage broker Jonno Scaroni and financial planner Jay Featherby, we provide an all-encompassing view of current trends and future prospects.
Market Activity and Buyer Trends
The Sunshine Coast real estate market witnessed a flurry of activity as this year unfolded. Central to this surge has been the Queensland government’s initiative to double the first home buyers grant to $30,000, significantly invigorating the market and boosting the demand for construction finance, particularly amongst first-time buyers.
However, challenges emerged, notably due to the rising interest rates over the year. Many existing borrowers faced mortgage stress, seeking solutions through refinancing or lower rates. The ‘shock test’ introduced by lenders also affected new borrowers, requiring them to demonstrate their ability to manage higher rate repayments between 9-10%.
Property Market Outlook
As we greet 2024, the national property market is expected to experience growth, potentially between 1-4%. Influenced by elements such as tax cuts and continuous population growth, this growth is projected despite the backdrop of rising interest rates throughout 2023. The Sunshine Coast market, in particular, remains resilient, bolstered by a scarcity of supply amidst consistent demand, creating a favourable setting for sellers.
The unique charm of the Sunshine Coast continues to attract buyers, indicating that the upcoming period could offer lucrative opportunities for homeowners looking to sell. Integrating festive celebrations with smart market strategies, the next few months could be highly advantageous for those aiming to capitalise on their property investments.
Economic Overview
Economically, while the Reserve Bank of Australia (RBA) held interest rates steady in December, the overall trajectory for 2023 saw an increase in rates, primarily to manage inflation targets. This contrasts with the US Federal Reserve, which is considering rate reductions by mid-2024. The Australian economy, on its part, faces unique challenges, with a slight downturn in retail sales and potential per capita recession risks.
Under the stewardship of Michele Bullock, the RBA’s approach indicates a cautious stance amid mixed economic signals. Globally, the economic landscape presents a complex picture, with resilience in China’s economy juxtaposed against contrasting indicators in the US.
Looking Ahead
As we move into, the Sunshine Coast real estate market remains a beacon of growth and opportunity. However, navigating this market will require a deep understanding of the broader economic context and the evolving dynamics of real estate. For those pondering property transactions, whether it’s buying, selling, or investing, staying informed and seeking tailored expert advice is crucial.
At the Ottiam Group, we are dedicated to offering that expertise and guidance, ensuring you make the most of the opportunities available in the ever-evolving real estate landscape of the Sunshine Coast.
Wishing everyone a prosperous and successful 2024!
