Maryborough housing update

CRAIG WINTER

MARYBOROUGH West is one of 20 locations in Australia where house prices are predicted to continue rising despite interest rate rises, according to the latest Well Money real estate report.

The quarterly Well Money Green Shoots Report identifies the top 20 suburbs in Queensland that are currently showing the clearest signs that strong price growth is just around the corner.

Maryborough West sits at number nine.

Well Money CEO Scott Spencer said the latest report has identified housing markets that are bucking the downturn trend.

“In every one of these suburbs, inventory levels and days on market have fallen over the past three months, which means conditions have moved in favour of sellers,” he said.

“As a result, vendors have increased asking prices in all the suburbs, despite the fact the market is cooling in many parts of Queensland.

“That shows you that Queensland is not one big housing market, but actually contains dozens of different markets.

“Last year, most of them were experiencing price increases; now, many of them are experiencing price reductions. However, the suburbs in this report look set to grow in coming months. That’s because demand is currently higher than supply, which means buyers are being forced to compete hard.

“That sort of competitive tension is likely to generate increases in selling prices.”

The rest of Maryborough is still faring well, with local salehouse Winter Auctions reporting an average sale time of four days over the past two months showing that the regional housing market is still strong.

With the RBA increasing the official cash rate by .50 basis points last week, economists are expecting the property market to cool off in many cities.

Will the local market do the same?

Tony Nioa of PRD Maryborough thinks that the fundamentals of the Maryborough property market have shifted over the last two years, with employment-based migration now driving purchases where as previously it was more affordability-based migration.

“This has seen rental housing being purchased by owner occupiers, further reducing the rental pool in the Maryborough market and putting upward pressure on rental pricing.” he said.

“As this shortage of rentals continues, we are seeing investors coming back into the market looking to acquire quality rental properties.”

“They are factoring in further increases in the rental pricing in this area.”

Available Homes in the greater Maryborough Region (Source: REA Monday 8/8/2022) properties listed for sale and not under contract with 2 or more bedrooms). Under $300 000 – 17 Homes available $300 000- $400 000 – 50 Homes Available $400 000 - $550 000 – 44 Homes Available $550 000 - $800 000 – 49 Homes Available $800 000 and Over – 35 Homes Available

“In the last 6 months there has been 202 recorded under $400 000 and 95 recorded sales over $400 000 of homes of more than two bedrooms and under 8000m2 of land.”

“Which means that Maryborough houses under $400 000 turn over on average of every 2 months and we have 8 months supply in the over $400 000 bracket or more importantly, the market is four times more competitive in the under $400 000 market.” said Tony.

Ray White Principal Guy Meredith said that whilst the national real estate market has slowed considerably in the last month, the Maryborough housing market continues to buck the trend.

“Our increase in popularity and population is a true and sustainable indicator for continued growth.” he said.

“The market has boomed over the past two years with our median house prices rising.

“Whilst we have witnessed significant capital growth in the Maryborough market; in many ways it has been a price correction for the Fraser Coast.

“I believe we have been way too low for too long.” Guy said.

“Whilst capital growth has exceeded 35% in several suburbs and mortgage interest rates are forecast to increase as much as 2.5%, the Maryborough property market still remains very affordable.”

“Housing affordability is a key factor for first home buyers and investor activity within the marketplace.”

“Ray White negotiated 19 contracts for July, which is a direct result of Maryborough’s value for money; and high rental yield.”

Ray White Maryborough currently has a vacancy rate of .4%.

The Well Money report also supports local reports of Maryborough’s median housing price leaping from $400,000 in April to $499,000 in July this year.