Properties in the Gold Coast are taking two weeks longer to sell now than in 2018, and experts forecast that average days on market will increase more, according to an article in realestate.com.au.
Houses on the Glitter Strip’s average days to sell rose by 11 days from 74 days in the previous year. Unit sales, meanwhile, spent an average of 90 days on the market — up 14 days compared to a year ago, according to CoreLogic’s Quarterly Regional Market Update.
“The market goes through cycles; we have a rising cycle where people are driven by fear of missing out and (have) a great deal of confidence. In that space, they move quickly. (In) a correction phase of the market, which always follows a rising market … (buyers are) driven by a different kind of fear, that’s a fear that they might pay too much, so they are slower to make decisions,” said Andrew Bell, Ray White Surfers Paradise chief executive officer.
The unrealistic price expectations from sellers are also playing a part on the longer time on market of properties. In many parts of the country, properties are staying on the market for 120-130 days.
“(The Gold Coast) average will keep rising, I expect to see it surpassing 100 days during the second half of this year,” said Bell.
Cameron Kusher, a CoreLogic research analyst, shared the same forecast. “The only thing that could stop that is if people get more realistic about prices. We are seeing this across the board, around the country, properties are taking longer to sell. There are tighter credit conditions, fewer buyers and fewer sales, but it’s not just on the Gold Coast. It’s a tougher market now than it has been,” he said.
The recent data also revealed that sales activity on the Gold Coast slid by 14%, with current activity 15% below the five-year average.
Home values across the region have climbed a bit. House prices grew by 1.6% to about $10,000 and unit values rose by 1.5% to $6,000. The median house value sits at $645,000 while units have a median value of $417,000.