Real Estate Market Update - Merrimac, Gold Coast
Houses - Merrimac
Looking at the numbers below, the market has weakened over the year and prices are down 2.6% from the start of the year. This is a significant change from my report in July, when the average price was up 2.8% for 2018.
Days on market hasn't moved up significantly for the year, however, percentage stock on market is on the rise and is significantly higher than it was in 2013 (see graphs below).
Days on Market - HOUSES
% of stock on market - HOUSES
Units - Merrimac
Merrimac unit prices have declined significantly this year, down 6.6% for sales since the beginning of the year. This is similar to my report from July.
Days on market has also increased and percentage of stock (supply) on market has increased sharply over recent months and years.
Days on Market - UNITS
% of stock on market - UNITS
Merrimac house prices seem to be going through a year of price consolidation after 5 years of steady growth.
Units in Merrimac, however, have declined significantly and the "supply" seems to still be increasing which does increase the risk for further declines.
There is definitely a shift in the market this year, but whether this leads to a longer term downturn in the local market is still too early to determine.
Herron Todd White are predicting this to be the start of a declining market on the Gold Coast.