You’ll find Pomona nestled at the base of Mt Cooroora. Picturesque, relaxed with some great cafes, pubs, parks and speciality stores. Rich in agricultural history, the oldest silent movie cinema in the world, The Majestic Cinema, gorgeous views and relaxed country living make Pomona an ideal spot for property buyers. The Noosa Hinterland is a bit of a market darling right now, so naturally many Pomona homeowners are asking themselves, is now the right time to sell?
Like every BIG decision, it comes down to motivation. But before we get too far ahead of ourselves let’s look at Pomona as a place to live first.
What is it like to live there?
Any visitor to Pomona or almost any Noosa Hinterland town will start falling in love with the area. It’s hard not to imagine an idyllic life when you visit Pomona; early morning coffee, hiking Mt Cooroora on the weekend, visits to Boreen Point and exploring the Mary Valley. Embracing the strong sense of community and living in a country town atmosphere all while being a stone’s throw from Noosa and the Sunshine Coast. We’re all guilty of doing this, imagining a life in the places we visit. Daydreaming on a sunny afternoon walk around a new spot that you have discovered, when you’re taking in the sights a feeling steals over you and the thought pops into your head – ‘I could live here’. Any meander through Pomona results in that thought. In terms of livability Pomona rates highly, around 4.1 on homely.com.
With property prices increasing by around 27% against the rest of the country since last year, Pomona is a ‘hot’ suburb. The average listing is around 45 days (45.1 to be exact) and a property listing can expect a whopping 1,343 visits per property listing – that’s almost double the average for Queensland. All of this affirms that Pomona is an in-demand suburb, so if you’re thinking of selling your property, now is a great time.
Motivations to sell?
Maybe it’s time to upsize, maybe it’s time to downsize? Deciding to sell your property really comes down to motivation, with 34% of the population in Pomona considered an older family or retiree, the option to downsize is appealing as an empty nest becomes a reality or larger homes require too much upkeep. Sometimes the idea of ‘cashing-out’ also has its appeal, with Sunshine Coast markets experiencing a boom currently meaning that for some investors the idea of heading into new markets or freeing up cash is tempting. If you’re thinking of selling your Pomona property, give us a call and we can work with you to maximize your home’s value.
Three factors that are influencing the Pomona market?
So, after all that preamble, what’s happening in the larger real estate market that might affect Pomona?
1. A seller’s market… but for how long?
Currently, it’s a seller’s market. Some economists are warning of a crash coming into 2023 and believe that 2022 is the last year for growth in many Australian suburbs. Depending on which camp you’re in, that could either mean a burst bubble or a natural correction as we ride off the high property increases of the last two years. Pomona is technically a suburb of the Sunshine Coast and South East Queensland which usually endure market changes really well. For example, since 1993 Sunshine Coast property has increased by 6-9% annually [Source: Aussie.com.au] it’s only really been the ‘pandemic’ years that we have seen the sharp increase in market value. So, historically our little patch is a safe bet and Pomona should prove no exception to this. That being said if you’re keen to sell and move on, upsize, downsize or cash out – 2022 is looking very viable.
2. Interest Rates are due to rise in the first quarter of 2023
Many eyes were focused on the inflation rate last quarter. Australia aims to maintain a 2-3% inflation rate to stabilize economic growth and improve consumer confidence. Unfortunately, the inflation rate came in at 3.8% which in turn led the Royal Bank of Australia (RBA) to forecast a cautious rate increase. Currently, we maintain a record low of <1% so for housing things are looking good. BUT that is due to change in 2023 with many of the big banks hedging their bets a rate increase is looking likely by February 2023. Westpac chief economist Bill Evans had this to say.
“Now it becomes a forecasting game, and we think the Reserve Bank’s forecasts are still too cautious. And that’s why we have the first rate hike in the first quarter of 2023 compared to the implied forecasts around the RBA’s new forecasts of late 2023.”
It’s unlikely that any bank is going to be too out of step with the RBA so any hikes will be modest but it will affect borrowing capacity and property value will react to this.
3. Tree Change remains – That’s great for Pomona
Tree change boomed throughout the Pandemic. Many city workers were told to work from home in the early days of the COVID-19 pandemic, restaurants closed, cafes, gyms, spending habits were thrown into upheaval – you were there so we won’t go into detail – suffice to say this, many city natives looked around at their lives during the pandemic and saw it as a catalyst for change. The conveniences of city life waned quickly when they weren’t so readily accessible. With the realization that many careers could now be managed from home offices with good internet connections, the desire for more land, more nature, more time with family and less commuting and hustle became apparent. The good news is that for places like Pomona and the Noosa Hinterland the trend is set to continue into 2022, despite businesses asking people to step back into work.
Armed with the above knowledge, should you sell your Pomona property? Again that comes down to your motivations. If you’d like to discuss it with us, we’re always ready for a chat. Give us a call or drop by the office.
Thanks for reading the Countryside Noosa Realty team.