While 2021 has seen new precedents for real estate demand and rising property values across the Sunshine Coast and Australia, there’s growing concern among many that the present market is making home ownership affordability extremely difficult for many Australians.
According to Michael Yardney’s latest Property Update, The Council of Financial Regulators which is comprised of four main financial watchdogs, expressed concern about the increased level of home lending in the first half of 2021. In particular, they highlighted the number of mortgages taken out at more than six times the borrower’s income. The council has since requested the Australian Prudential Regulation Authority (APRA) put together a list of potential measures to address this red flag.
Local Hinterland sales specialist, Cassi Nuske of McGrath Estate Agents says, “in the same way few people predicted the property boom which has followed in the wake of Covid-19, there are changes coming in 2022 and the outcomes are impossible to predict with certainty. As long as lending conditions and interest rates remain stable and the spread of the virus in Queensland doesn’t impact buyer confidence when border restrictions ease, current trends should hold for the first part of 2022. However, these factors do have the potential to influence the upward trend we’ve been experiencing and every cycle comes to an end at some point.”
If you’ve been considering selling or would simply like an up-to-date appraisal of your property, please contact your local Hinterland specialist, Cassi Nuske on 0415 304 127 or email cassinuske@mcgrath.com.au for a confidential discussion. Alternatively, feel free to visit the McGrath Beerwah office next to K-Hub.