Real Estate Market Update - Varsity Lakes - August 2019
With the financial year-end and elections behind us, it's a good time to look back at the performance of the property market over the past year.
We have also seen some significant changes in the market over the past month, you can see details on these in my "Summary" below.
Houses - Varsity Lakes
As can be seen clearly from the graphs below, prices peaked in 2016 and have been moving sideways since. CoreLogic does show a significant drop in prices over the past year of -5.6%.
Days on market has also increased steadily since 2016, giving supporting evidence that the market has softened.
Percent stock on market shows a significant drop in recent months and this should help to steady prices.
Median value for houses in Varsity Lakes over the past 10 years.
Median value for houses in Varsity Lakes over the past year.
Units - Varsity Lakes
As with houses, we can see that prices peaked in 2016 and we have seen a sideways movement with a slight decline since. CoreLogic shows an increase in price over the past year of 0.6%.
Days on market has been increasing rapidly since 2017, giving supporting evidence that the market has softened.
Percent stock on market has been declining since 2017 and is now at a 10 year low, this should help to support prices.
Median value for units in Varsity Lakes over the past 10 years.
Median value for units in Varsity Lakes over the past year.
Summary
It is quite clear now that Varsity Lakes has been in a stagnant market since 2016. The suburb has however bucked the trend, with most of the Gold Coast declining over the same period.
At the present time, the considerable decrease of stock on the market should help to support prices.
Prices could further be supported by the reduction in the assessment interest rates that the banks use to determine a clients borrowing capacity, this rate has been reduced by a significant 1.75%.
We have seen anecdotal evidence in our business over the past month to support that the lower stock levels and change in assessment rates have been contributing to stabilising prices. These include higher sales volumes and higher numbers through our open homes. Our average number of buyers through each open home has increased from 2.3 in May to 3.4 in July, this is a significant increase of approximately 50% in traffic at the open homes.