At its core real estate is about demand and supply.
When demand exceeds supply, then values often rise. When supply is greater than demand, values either plateau or fall.
The degree of rise or fall often relates to the magnitude of the demand and supply imbalance.
I have included six charts this post – three covering the new housing market across south east Queensland and the second trio covering the resale or existing dwelling market.
In short, the new housing market, despite the recent fall in demand – i.e., very little net overseas migration during financial 2021 due to Covid restrictions – still remains undersupplied.
These three charts include my estimates for population growth during fiscal 2021.
The resale housing market is also undersupplied. In this case demand is growing – that is, increasing sales – whilst the stock listed for sale is falling, and sharply in many cases.
This mismatch is very likely to keep the upward pressure on dwellings prices across south east Queensland for some time to come.