Gold Coast houses in decline: HTW

The housing market in the Gold Coast is starting to decline, according to valuation firm Herron Todd White (HTW).

The Gold Coast housing market started to decline just over 12 months ago.

Last month Herron Todd White called the Gold Coast housing market a declining market, however have moved it to further back in the cycle, suggesting there is further to go in the downturn.

To enlarge Herron Todd White's national property clock for houses, click here.

Herron Todd White says it seems to be a mixed market.

"The feedback from agents and volume of sales paints different pictures depending on the locality and looking at the various regions, it is evident that each locality offers something different.

"Overall, the underlying theme is that the market was cooling its heels in the lead up to the election and will more than likely continue to do so in the coming months. 

"Most agents are reporting a softening in buyer enquiry and demand across the board throughout this locality, with all reporting some softening in value levels and longer sale periods often required to achieve a sale.

"It is definitely a buyer’s market and they are more discerning with their choices and in no rush to sign up to buy.

Herron Todd White's report noted that a leading agent said there has been a drop of around 10% for Bundall and Sorrento from the generally accepted top of the market in late 2017.

"This was evidenced in a top end sale where the purchasers had submitted an offer at $4.5 million less than eight months ago and have just gone to contract at $4.1 million on the same property.

"The local market is well aware of the downward trend in the southern cousins of Melbourne and Sydney, however there appears to be a general consensus that local value levels here didn’t sky rocket like our southern counterparts and as such any market correction here is likely to be much more gradual and gentle in nature."

There were plenty of moves across the country in July as 2019 ticks into the second half of the year.

Sydney, the Illawarra and Southern Highlands region are approaching the end of their downturn cycle.

Herron Todd White now believe they are approaching the bottom of the market.