Mackay's Rental Market Remains Resilient Amid Economic Concerns

Ethan Laval Discusses Mackay’s Market Trends Amid RBA Rate Rise

Ethan Laval was featured in Friday’s news report discussing Mackay’s current market trends with the recent RBA rate rise.

According to concerns voiced by experts, there are apprehensions that the economy might be heading towards a recession, fuelled by another interest rate hike and rising inflation. In this climate, homeowners are diligently assessing their financial situations to determine how they can afford their mortgage repayments. However, despite these challenges, local real estate agents assert that Mackay’s housing market remains strong.

Another rate rise means another hit at the hip pocket, and the idea of purchasing a home is now not as attractive as it once was. The days of easily affordable homes that could be paid off quickly have become a thing of the past. Unless one has substantial financial resources, such as a million dollars, the dream of owning a house seems out of reach.

“Unless you have a million dollars behind you, you can’t get a house.” Mackay resident said.

Gone are the days of cheap homes that could be quickly paid off.

“$200 a month, five years it was paid off.” Mackay resident said.

The cash rate currently stands at an 11-year high of 4.1 percent, adding to the concerns of homeowners who are now carefully evaluating their financial capabilities and determining what they can afford. 

“So we’re seeing a lot of people, I guess, more so. Just worried about what that means to their budget.”

Households rolling off a low fixed mortgage rate could now pay up to $2000 more monthly. But the higher repayments don’t seem to be scaring off some buyers in Mackay. 

“I’ve just put three houses under contract earlier this week, and I’m noticing that a lot of buyers are afraid of missing out on homes,” Ethan said.

More people are trying to escape the challenging rental market and are opting to purchase their first home. Ethan emphasised that many tenants currently renting are actively looking to buy a property, aiming to transition out of the rental market.

“A lot of rental tenancies are looking to purchase to get out of that rental market, and vacancy rates are still below one percent. So, the rental market in Mackay is doing very strong.” Ethan said.

Remarkably, despite these transitions, vacancy rates in Mackay remain below one percent, indicating a thriving rental market. This strong demand for rental properties further contributes to the overall strength of the rental market in Mackay.

Conclusion

While concerns about a potential recession, rising interest rates, and inflation persist, Mackay’s rental market has demonstrated resilience. The affordability of homes has become a significant consideration for buyers, prompting some to delay their purchase plans.

We have noted shifts in several suburbs in the region in this month’s reporting eg. Mt.Pleasant, Bucasia & Glenella.

If you’d like to know more, please feel free to contact us for a suburb report or appraisal.