12th April 2022
APOLLO BAY- HERE & THERE
Week one of the school holidays down and the town has been buzzing with families out and about enjoying our beautiful region. Our local businesses are offering lots to see and do while you are here so the team at Wild Life Wonders have put together an activity guide, from surfing to seal colonies, waterfalls to wildlife spotting, click HERE to view the guide. Be sure to check out their ‘Wildlife Wednesdays’ holiday program that teaches children about Australian wildlife, the importance of habitat, and how everything connects in the natural world.
The countdown is now on to the first ever ‘Storm The Bay’, it’s Ocean Swimming on the EDGE OF BASS STRAIGHT at the HEART of the Great Ocean Road. Events include a 1.2km, 2.5 km Swim & 250m Kids Swim. Come together in celebration of our town, our people, and the simple joy of swimming. Join us on April 24th as we celebrate the freedom of the outdoors at Apollo Bay. Our pristine piece of ocean will come alive as hundreds of swimmers take to the water to be the first to Storm the Bay! Click HERE for more info
Wishing you all a safe and happy Easter break from the team at Great Ocean Road Real Estate and don’t forget to head on over to our socials to enter our Easter Giveaway, in conjunction with the Apollo Bay Distillery we are giving one lucky follower a hamper packed with local goodies! Check out our Instagram for entry instructions: @gor.realestate.ab
APOLLO BAY- MARKET ROUND UP
Three major influences affecting the Property Market in 2022
We saw some of the biggest house growths in 2021 with outstanding results achieved in our local property market. You may be wondering what this means for 2022 so we take a look at three key factors:
City Dwellers in search of a Seachange
Strong demand, a constrained supply of properties for sale and record-low low interest rates combined to make a perfect storm for house price growth in the 2021 property market, seeing city dwellers flocking to coastal and regional areas in search of improved lifestyle with their newfound flexibility and this has continued into 2022. We are seeing signs of prices stabilising as demand balances out and people return to work, social commitments and overseas travel.
As recently reported by REA’s Mr Moore “We’ve seen a huge increase in wealth over the past few years as house prices have risen because housing is the largest asset type for most Australians,” Mr Moore explained.
An interest rate rise is on the way
Some economists warned the recent budget’s cost of living measures will add to inflationary pressures, although they have not changed their expectations for when the Reserve Bank of Australia will lift the cash rate from the record low 0.1%.
“The cost of living payments announced in the budget will add to near-term demand and inflation pressures in an economy where rising inflation is already a concern,” Commonwealth Bank of Australia economists said, noting the fuel excise cut will reduce inflation in the second quarter.
CBA chief economist Stephen Halmarick said the extra stimulus the pre-election budget will apply to the economy is relatively muted.
“However, given rising inflation and strong employment and wages growth, we maintain our view that the Reserve Bank of Australia will raise interest rates in the near-term, with an initial increase to 0.25% expected in June this year, rising to a peak of 1.25% in early 2023,” Mr Halmarick said.
“While rate hikes can take time to fully impact the economy, holders of variable mortgages will be shortly paying higher interest rates while those on fixed rate mortgages will be rolling off their fixed terms into an environment of higher and possibly rising mortgage rates. Households should start planning for these increases now and the likelihood of interest rate increases sooner will potentially create some market urgency initially but also take some of the exuberance out of the market regarding the rate of price growth” reported Paul Ryan from REA.
Lending for property market purchases reached a new record high through January 2022 (at around $33.7 billion). This included a record $11 billion to investor purchasers. Despite these record highs, growth in lending slowed to 2.6% through the month of March, down from 4.4% in the previous month.
A stabilising of the property market
After an extraordinary year of growth for the property market, where Australian housing values have increased more than twenty per cent, we’re now seeing a slowdown in that rate of growth across every capital city and broad ‘rest of state’ region, albeit with significant diversity. With restrictions eased, it is likely that people will want to spend more on entertainment and travel which they haven’t been able to do for the past two years.
Dwelling values in Australia were 20.6% higher over the past 12 months (0.6% gain in February) which is down from the recent high of 22.4% in the 12 months to January and market peak of 2.8% in March 2021.
The slowdown in housing markets has been accompanied by a gradual normalisation in advertised stock levels as the trend in new listings picks up. Factors such as decreasing affordability along with higher costs of living and rising fixed term mortgage rates are central to the housing slowdown. Along with weaker sentiment around the outlook of interest rates and global uncertainty.
Commonwealth Bank economists are maintaining that property prices will end 2022 flat and decrease 8 per cent in 2023. Demand for our stunning Great Ocean Road remains strong regardless, thanks to our unique lifestyle offering. We know the lifestyle we have here, particularly in Apollo Bay and surrounds is incomparable and so do our buyers. This has protected our local property market previously from downturns in the macro market as people want to live in our desirable location.
Vendors who are realistic with property pricing are selling well and only the most outstanding properties are performing beyond expectations. With increasing price sensitivity from buyers, vendors who have taken advantage of their agents’ advice on pricing and presentation, have enabled them to achieve solid results.
Whether you are looking to buy, sell or lease your property, the Great Ocean Road Real Estate team are here to support you in your journey. We look forward to sharing with you our unique selling strategies, database matches and “Off Market” opportunities.
Sources: REA, Domain, RP Data, REB
For and on behalf of the entire Great Ocean Road Real Estate team
APOLLO BAY- A LITTLE SECRET
Sunday 17th April
9am to 1pm
19 to 21 Moore Street Apollo Bay
Head on down to the local farmers market this Sunday where you can meet the maker or the producer of local foods or food products. Enjoy the relaxed atmosphere and shop for local products, Market to be held outside at the Apollo Bay Youth Club.
APOLLO BAY- QUOTE OF THE WEEK
“The best way to predict the future is to invent it.”
Click HERE to view our current listings