One of the most frequently asked questions we get as Agents is what is going to happen next? As I always say, no one has a crystal ball however, we can look at historical events as well as current trends to provided an educated answer. 

Since 2020, we have worked through various stages of the property cycle in quick succession. From a rising market in early 2020, a free fall in March 2020, to the boom later that year into 2021 to where we find ourselves now. We still have strong demand and a good economy with almost full employment but in an environment where interest rates are rising quickly from the emergency low, there is doubt in the mind of some buyers.

I highlight the word cycle, as it is important to remember that the property market goes through cycles, which in the case of real estate, is the movement of values. Cycles have highs and lows, and each stage varies in length and generally reflects a range of conditions which in turn, influence the property market. Neither extreme high’s or lows are sustainable.

In my 30+ years of working in property, I have worked through every stage of the property cycle, numerous times. What remains true is that long term, Brisbane Property has been a very strong investment.

So, what are we seeing in Brisbane right now? The changing market dynamics are being driven by a rebalancing of supply and demand.

Homeowners have reacted to record pricing with the highest volume of new listings over the three months to June since 2018, making for the busiest June quarter on record for Brisbane’s auction market, according to CoreLogic.

Many of these vendors are facing the reality that the market has passed its peak. The total number of advertised homes for sale remains 30% below the five-year average and 13% lower annually. The number of potential buyers per listing has eased from the peak in early 2022, although remains heightened. There is no doubt that demand for Queensland property remains stronger compared with other capital cities.

Naturally, most people just want to know what happens next, which, no one can guarantee. What we do know is that interest rates will continue to rise and naturally affect some buyers’ capacity to borrow.

In saying that, people still have reasons that they need to buy and sell, regardless of interest rates, which though increasing, are at a historical low. If you are considering buying, do not fear that you are making a poor investment choice, especially if you intend to hold the property long term. Fluctuations in the market will happen, but Brisbane property prices will grow in value over time. If you are considering selling, I would urge you to take advantage of the upcoming Spring selling season with your local Place Agent.

Regards,

Damian Hackett

CEO, Place Estate Agents

This article was originally published in Place Insights. If you would like to receive the latest copy as soon as it is released every month, click here.