Some other market conditions have become more favourable for home buyers in Queensland this year. Since the start of the year properties have taken longer to sell, with median days on market across Brisbane lifting to 31 days in the three months to October from 13 days in the three months to January.
Across the rest of Queensland, median selling times have increased to 38 days from 19 over the same period. Vendors have also been discounting from initial listing price to the contract price.
The median vendor discount has deepened across Brisbane to 4.4 per cent in the three months to October from 2.9 per cent in the three months to January. In the rest of the state, vendor discounting reached 4.5 per cent in the past three months, up from 3.4 per cent at the start of the year.
These factors mean first home buyers may have more bargaining power in negotiations, and have more time to carry out due diligence, and compare properties. However, first homebuyer demand has been dropping in Queensland since February 2021, coinciding with the end of the HomeBuilder scheme.
On the supply side, the construction pipeline is down relative to historic averages while high interest rates and sharply higher construction costs will be headwinds to a recovery.
This suggests the demand-supply imbalance in Queensland will take some time to address. Given the outlook, the state is likely to continue to attract new residents but ongoing strong housing demand will remain a challenge to housing affordability.
Felicity Emmett is a Senior Economist at ANZ and Eliza Owen is Head of Residential Research Australia at CoreLogic.