Home Insights Homebuyer Demand Is Falling But Remains Well Above Pre-COVID Levels

Homebuyer Demand Is Falling But Remains Well Above Pre-COVID Levels

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Rising interest rates have eased demand from potential buyers since 2022. This is evident in the slowdown in home price growth.

However, housing demand in one state continues to outpace other states.

The PropTrack PotentialBuyers Index, which measures the number of people who are seriously interested in buying, shows that demand has been declining since March of this year.

This is partly due to interest rate hikes that lenders are expected to start raising mortgage rates since November 2021.

Fixed-term lending to both owners and investors was initially most affected by the increase.

Demand has slowed, but remains 50% higher than before COVID in early 2020, and potential buyer levels continue to rise significantly in certain regions.

An analysis of the SA3 region, which has the highest annual growth rate of potential buyers every quarter, reveals that interest in Queensland housing has skyrocketed in the last 12 months.

The Queensland region in particular makes up the majority of the top 15 potential buyer growth regions.

With the median home price in Brisbane approaching $ 800,000, many Australians are flocking to rural Queensland in search of more affordable options.

The Queensland region is at the top of the list in terms of annual demand growth.Photo: Getty

This is clearly seen in the recent rise in prices.

In Queensland (including the Gold Coast), prices have risen 24% over the past year. This is the third highest pace in the entire metropolitan area.

More insights from a team of PropTrack experts:

Home prices in Brisbane and New South Wales rose slightly, but unit values ​​in the Queensland region had the highest annual and monthly growth of 22.3% and 0.95%, respectively, in all regions and capitals. I experienced it.

This shows that strong demand from potential buyers continues.

Demand from potential buyers is set to decline further during 2022, and prices are expected to tend to fall in some capital cities.

However, it is possible that it will remain above the pre-pandemic value.

However, in Sunshine and South Australia, where markets remain strong, demand and prices are expected to remain strong in the coming months.

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