Why are prices still increasing?

Why are prices still increasing despite all of these interest rate rises? Here are our thoughts on why the Gold Coast property market has continued to soar despite steep interest rate climbs, inflation and a global pandemic.

1: During Covid, the majority of the population accumulated savings. People reduced their lifestyle, they weren’t getting takeaway every second night, they were shopping less. Savings grew. This increase in bank savings has been the saving grace for many people as they dealt with the increased interest rate rises over the last few years.

Most people will always opt to sell their car or reduce their lifestyle by pulling in the belt in other areas before they sell their biggest asset, their home or investment property. The Gold Coast has faired incredibly well during our interest rate hikes and we have yet to see the need for people to sell their homes after coming off fixed interest rates.

2: Supply and demand. The classic supply and demand piece. So long as there are more people willing to buy property than there are people willing to sell property, prices will continue to rise.

3: Population growth. The Gold Coast has always been an envious location known for its white sandy beaches, surf breaks, 50 weeks of sunshine and laid back lifestyle. As more and more people flock to our beach- side city, the property market will continue to benefit. Ultimately people moving to the Gold Coast will either need to rent or buy - propping up our rental and sales market.

Are you thinking of making a sea change? We would love to help you find the perfect home or investment property.

Contact us today for a friendly chat.