First-home buy­ers re­turn­ing

Chang­ing con­di­tions in the Glad­stone prop­erty mar­ket have boosted op­por­tu­ni­ties for first-home buy­ers and lo­cal pur­chasers, with in­vestor num­bers drop­ping.

The Courier-Mail - Property - - MARKET OUTLOOK REALESTATE -

AC­CORD­ING to lo­cal REIQ ac­cred­ited agen­cies, the Glad­stone prop­erty mar­ket recorded a much-needed mar­ket cor­rec­tion dur­ing the sec­ond half of 2013.

The lo­cal hous­ing mar­ket is now much more bal­anced, with a resur­gence in first-home buy­ers, as well as lo­cal ac­tiv­ity qui­etly start­ing to take place.

Renters fi­nally have some choice fol­low­ing sev­eral years of very dif­fi­cult leas­ing con­di­tions, but the rental mar­ket re­mains ex­tremely ac­tive.

Prices have soft­ened, how­ever, given the slow­ing in new hous­ing this could change sooner than many an­tic­i­pate given Glad­stone’s his­toric growth pat­terns.

The lat­est REIQ fig­ures show that dur­ing the Septem­ber quar­ter 2013, the re­gion’s prop­erty mar­ket con­tin­ued to show eas­ing con­di­tions, with both the house and apart­ment sales mar­kets record­ing a drop in pre­lim­i­nary sales num­bers.

Its me­dian house price dipped 8.5 per cent to $400,000 over the quar­ter while sales num­bers were down 15 per cent, most no­tably in the pres­tige sub­urbs of Glen Eden and the Boyne Is­land – Tan­num Sands area.

The sub-$350,000 price point, how­ever, saw an in­crease in sales ac­tiv­ity, which also con­trib­uted to the fall in the re­gion’s me­dian house price for the quar­ter.

Ac­cord­ing to REIQac­cred­ited agen­cies, mar­ket ac­tiv­ity was sub­dued, with in­vestors all but gone.

The good news to this, how­ever, was first-home buy­ers were fi­nally get­ting their chance, given some very good buy­ing op­por­tu­ni­ties were be­com­ing avail­able.

Sales ac­tiv­ity in the apart­ment and town­house mar­ket, which only makes up about 15 per cent of res­i­den­tial dwelling sales in the Glad­stone re­gion, re­turned to usual lev­els fol­low­ing a dip dur­ing the June quar­ter.

The me­dian sale price was up 4.3 per cent com­pared to the June quar­ter, with an in­crease in sales of higher-qual­ity stock in Glad­stone City.

Ac­cord­ing to the lat­est sales mar­ket in­di­ca­tors from RP Data, the Glad­stone res­i­den­tial prop­erty mar­ket was ex­pe­ri­enc­ing longer av­er­age days on mar­ket, cou­pled with in­creased av­er­age ven­dor dis­count­ing.

About one year ago, the re­gion was record­ing the low­est dis­count­ing of just 5.4 per cent, but now has an av­er­age rate of 9•per•cent – the high­est for all the ma­jor re­gions of Queens­land.

The out­look for the re­gion, ac­cord­ing to REIQ ac­cred­ited agen­cies, was more of the same within the next 12 to 18 months, which will see the Glad­stone prop­erty mar­ket slowly re­turn to nor­mal mar­ket con­di­tions as ex­cess stock is ei­ther sold or taken off the mar­ket.

Lo­cal agents also ex­pect to see a cor­rec­tion in prop­erty prices, which is good news for first-home buy­ers who have strug­gled to com­pete with in­vestors dur­ing the peak of the min­ing boom.”

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