Local real estate market proving to be a runaway train

THE Toowoomba property scene is currently enjoying an end-of-year renaissance not witnessed for almost a decade.

Favourable interest rates, a host of government housing grants and even the aftermath of COVID-19 have all combined to see real estate stock heading out the door as fast as it comes in.

We asked some local agents for their thoughts on the upsurge in buyer interest and what anyone entering the market should consider in the weeks ahead.

Be proactive

Director of Colliers International Toowoomba Dominic Ryan attributes the recent COVID-19 crisis with having an indirect influence on the current vibrancy of the market.

“People were/are essentially spending more time at home and it has given them an opportunity to look around their house and think about what they want and need,” Mr Ryan said.

“It can mean they are now looking for something different by downsizing or adding features.

“With the weather as it is at the moment, and Christmas almost here, pools are obviously very popular as well.”

Mr Ryan said lower interest rates were also a strong driver of positive sentiment.

“Interest rates are at historical lows, so it’s encouraging a lot of people to take that next step – either upgrading or buying their first home.

“Banks are a little overwhelmed by the volume of inquiries, so it’s taking a bit longer. But everyone’s in the same boat, so there’s a level of understanding.”

Mr Ryan said the market was also being invigorated by the ‘traditional number’ of people coming from out west, whether retiring or choosing to leave properties to be closer to the city.

“We’ve also had trickles of inquiries from down south,” he said.

It all helps to keep property valuations on the boil.

“Prices have increased somewhat,” he said. “But Toowoomba is consistently steady with limited peaks and troughs, but I do see the shift upwards at the moment.

“More buyers than sellers means strong competition and that gets the market moving quite rapidly – if your home is priced well, then you will get good results.

“At the moment, we’re seeing a number of properties sell within days – with multiple offers in some circumstances.

“While we don’t have the huge capital growth of down south, there have certainly been a good number of investment inquiries as well – everything from the entry mid$200k to duplex and triplex sales.

“This is on the back of strong rental demand because vacancy rates are historically low due to a lack of development in the region.”

“Ours has always been a very resilient market – the local mortgage belt isn’t stressed – and the industry is benefiting as a result.”

But if you’re thinking of buying, or selling, Mr Ryan says to “take advantage while you can”.

“What seems expensive today will only be more so in six months’ time, so lock in that interest rate and be proactive.”

Passing the test

For David Snow (Principal of Peter Snow and Co Real Estate), the November/December period is traditionally a busy time of year for the industry – and that’s even more so now, post COVID-19.

And while the pandemic threatened lives and livelihoods, he says Toowoomba was somehow able to roll with the punches.

“In March and April, the economists were predicting a drop of 30 per cent in major capital cities and we faced the flow on,” Mr Snow said.

“In the past, if Sydney sneezed, Toowoomba got a cold eight months later, but it wasn’t evident on this occasion.”

“Each state has a different cycle, but thankfully the expected massive downturn never eventuated.”

And while our local market is tracking nicely, Mr Snow is quick to dispel misconceptions that every property is instantly disappearing.

“All homes aren’t necessarily selling as soon as they’re listed – although many in the $350,000 to $500,000 range are receiving multiple offers – but, average days on market have dropped considerably (from upwards of 60) to 7 to 21 days,” he said. “We haven’t seen that for some time.” To secure the best possible price for your property, Mr Snow says ‘marketing is key’.

“Homeowners who do decide to put their house on the market should do so with professional marketing rather than simply taking the first offer (off market) because often they are unaware that they could be getting a better return.

“People who wait and invest in a marketing campaign then have buyers come through open houses at the same time and on the same day – which will consistently see a greater value placed on their property.

“The marketing helps create a build up of demand from active buyers who are searching for the right home to purchase.

“They’re not buying just any home, but are ready to pounce,” Mr Snow said.

“Let’s not forget also, that the cost of borrowing money is at a lifetime low – it’s never been seen in our lifetime, our parents or grandparents; and buyers are understanding that they need to act.

“There has been strong rental demand across all price ranges, but because of uncertainty of employment many have stayed in rental accommodation which has seen us go from a 3 per cent vacancy rate down to .5 per cent.

“This has caused upward pressure on the cost of renting and people have thought: “Why not buy” – it has helped create a resurgence in the first home buyers market.

“For homeowners, another big factor has been that no one can travel, so that means $50,000 a couple may have spent on a month’s holiday overseas is now disposable income.”

Mr Snow said the ongoing fallout from COVID-19 would actually bring a positive result – more people looking to the Garden City as a place to call home.

“The ability to work remotely from home has changed how we view the office,” he said.

“People have now had a chance to reflect on living in major cities and many are saying: “Let’s go regional”.

“Toowoomba is well positioned to meet that need. There’s genuine excitement with the inland rail and the ease of travelling to Brisbane is also evidenced.

“We have a great climate, a good economy and fantastic education and medical facilities, so to an ageing demographic who are ‘cashed up’ and looking to move, Toowoomba is very inviting.

“The region has been tested of late and has passed with flying colours which has no doubt confused and confounded the experts,” Mr Snow said.

Have your ducks lined up

While the world staggered on the back of the COVID-19 pandemic, James Croft (Principal of Ray White Pittsworth and Warwick) feels the global disaster offered the real estate industry an opportunity to excel among all the uncertainty.

“When it first hit, we were all concerned about the doom and gloom that COVID would bring and what it was going to do across the region, but this has been one of our busiest sales periods for a long time,” Mr Croft said.

“As always, it comes back to supply and demand. There’s only a limited supply of quality properties on the market at present and they are getting a lot of interest.

“We’re seeing it right across the board with our programs and auctions; and I call it a mini cyclone on the Downs.”

Mr Croft said this ‘buyers cyclone’ is being driven from southern interest (New South Wales and Victoria); as well as Brisbane buyers and western families looking to relocate.

“The last three months have been exciting times and I would say we haven’t seen this level of activity since 2008/2009.

“We’re seeing good value for money in rural properties and that’s appealing to buyers, especially from southern vendors, where they sell a nice home for two or three million dollars and then have the capital to easily buy 200 acres up here,” he said.

“It’s very rewarding for them once they do the comparison.”

Mr Croft has some simple advice for potential vendors who are thinking of listing.

“It’s a bit dry at the moment but, regardless of the weather, if you’re looking to sell then you need to get your property on the market. When the rain does come – and properties green up and are looking their best – then you’ll be competing against others and may not secure the best possible sale result.

“There’s a limited supply out there at the moment and you need to be a part of it.”

For buyers, Mr Croft says to “stop mucking around and get your finance in place”.

“Have your ducks all lined up and be ready to go because we’re seeing stock sell within one or two days of being listed and the last thing you want is for someone else to snatch that property from under your nose.”

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Standout features include a slick and well-appointed modern kitchen with gas cooktop, a chic and stylish family bathroom and a fabulous outdoor entertainment area that will be the envy of family and friends.

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If you’re looking for a great place to call home (or a perfect addition to your rental portfolio), 21 Banksia Street is a must to inspect.