Our Changing Property Market

The average time it takes to sell a property in any given location has always been a leading indicator in measuring the strength or weakness of a property market.

By using our own office data and by reviewing realestate.com and CoreLogic research, a clear picture of the changing nature of our market becomes apparent.

As at the end of June 2022, the average time it took to sell a property on the Gold Coast through the first 6 months of the year was just 28 days. Robina was even lower with properties taking just 25 days to sell.

These numbers clearly show a market with strong buyer interest which in turn leads to sharp price growth.

Moving forward to the last 6 months of 2022 and the time it took to sell a property increased. Across the Gold Coast, the average time it took for a property to sell increased to 46 days whilst in the suburb of Robina it took 41.

Whilst these numbers show that it is now taking longer to sell a home, there is an underlying statistic that shows the true state of the market.

It's important to recognise that the average time it takes to sell a property can only be recorded once a property has in fact been sold. Currently across the Gold Coast, it is the number of properties that are sitting idle on the market without a contract of sale that is of concern.

In a falling market, the first 14 days of a sales campaign is critical.

Our feature story comes from the finance research firm "Finder". The article below was released during the week. It discusses the fact that their research shows that 1 in 5 homeowners believe they have borrowed too much. Increasing interest rates are now costing homeowners with a $500,000 mortgage almost $1,000 per month in additional interest payments and the stress on a growing amount of borrowers is increasing.

The full article is below:

Rate wrecked: 1 in 5 homeowners now say they borrowed too much on their home loan

Australian mortgagors are feeling like they've bitten off more than they can chew, according to new research by Finder.

A Finder survey revealed more than 1 in 5 homeowners (21%) admit they borrowed too much on their home loan – a worrying 693,000 households that have taken on too much mortgage debt.

As interest rates continue to climb, the number of households in financial distress is growing.

Finder analysis shows the average home loan rate has almost doubled – from 3.45% in April 2022 to 6.15% in November.

The average monthly repayment has grown nearly $1,000 from $2,231 to $3,128, based on a $500,000 home loan.

That's an annual increase from $26,772 to $37,536 in just 8 months, with further increases predicted.

Sarah Megginson, money expert at Finder, said those who didn't factor in rate rises could be feeling a lot of financial pressure now.

"Many Australians bought property during a record low interest rate environment and didn't plan for what they'd do if rates went up.

"Now as interest rates skyrocket, many have been pushed to their financial limit – with further rises on the way."

Younger property buyers were the hardest hit – with 1 in 4 generation Z buyers (25%) admitting they had borrowed too much.

Megginson said it's important to take control of the situation as soon as possible.

"Call your lender today and ask if there's any wiggle room. You'll be amazed to see what they can offer you to prevent you from moving to another lender.

"Also, consider refinancing to the cheapest rate in the market to lower your monthly repayments and to buy yourself some breathing room. The fees involved in refinancing are often more than offset by the savings you'll make.

"Let your lender know immediately if you don't think you'll be able to make a repayment. You might be able to take a mortgage repayment holiday or move temporarily to an interest-only loan.

"Downsizing is another trend we are seeing emerge as households look to decrease their expenses."

Queenslanders (26%) were the most likely to have regrets about how much they had borrowed, followed by borrowers from New South Wales (25%).

Men were more likely to say they were overcommitted – with 23% admitting they had borrowed too much on their home loan, compared to 19% of women.