Property hot again as buyers and homes flood on to the market
Article from:
Michelle Hele, Property editor
September 19, 2009 12:00am
THE housing market is bouncing back strongly, with properties selling faster and getting closer to their listing price.
The rebound has led to a flood of homes hitting the market this weekend.
And for the first time since the global financial crisis took hold, optimistic buyers are crowding auctions and open houses, with a massive 56,585 properties across the state now up for sale. Last month 11,426 new properties were listed.
Houses in Brisbane are now taking 15 days less to sell and for $10,000 closer to the list price than 12 months ago.
After almost two years of doldrums sparked by the global financial crisis, buyers are now losing some of their negotiating power. The amount sellers are willing to negotiate is down from 8 per cent in September last year to 5.9 per cent this month – or $10,000 based on the current median Brisbane house price of $480,000.
The median price of a house in Brisbane rose 3.3 per cent in the June quarter to $480,000.
RP Data analyst Cameron Kusher said investors bruised by falls since the dizzying highs of late 2007 were now easing back into the market.
"We are not really seeing the number of new listings ramping up as yet," he said. "I think you will see a much stronger re-entry into the market at the end of this month. Evidence suggests that upgraders have already been active (selling to first-home buyers) and investor activity is still low but trending up."
LJ Hooker New Farm principal Brett Greensill said it was finally a return to a traditional spring selling season after the previous two had been lost to gloom.
He said the onset of the global financial crisis in 2007 was "an end to silliness" and had made buyers shy. But an open house last weekend drew 32 groups, the most he had seen in 10 years.
Cathy Richards, of Place Bulimba, said more people were inspecting properties, with 25 groups drawn to an open home last week which led to a contract.
She said momentum was building and there was price growth but nothing substantial, with a property she sold a year ago likely to get about the same price.
First-home buyers don't have long in which to buy before the boosted Federal Government grant runs out.
From September 30 it drops from $21,000 for a new home to $14,000 and from $14,000 for an existing home to $10,500.
The grant then hits a flat $7000 after December 31.
Mortgage brokers report a noticeable spike in inquiries since the start of spring from potential first-home buyers who are worried about missing out on the boosted grant.
Mortgage Choice senior corporate affairs manager Kristy Sheppard said many of those buyers, who were desperate to get into the market, were ill-prepared and did not have sufficient deposit.
About 40 per cent of loan approvals going through Mortgage Choice are to first-home buyers, although upgraders and investor inquiries have also started to build.
Article from:
Michelle Hele, Property editor
September 19, 2009 12:00am
THE housing market is bouncing back strongly, with properties selling faster and getting closer to their listing price.
The rebound has led to a flood of homes hitting the market this weekend.
And for the first time since the global financial crisis took hold, optimistic buyers are crowding auctions and open houses, with a massive 56,585 properties across the state now up for sale. Last month 11,426 new properties were listed.
Houses in Brisbane are now taking 15 days less to sell and for $10,000 closer to the list price than 12 months ago.
After almost two years of doldrums sparked by the global financial crisis, buyers are now losing some of their negotiating power. The amount sellers are willing to negotiate is down from 8 per cent in September last year to 5.9 per cent this month – or $10,000 based on the current median Brisbane house price of $480,000.
The median price of a house in Brisbane rose 3.3 per cent in the June quarter to $480,000.
RP Data analyst Cameron Kusher said investors bruised by falls since the dizzying highs of late 2007 were now easing back into the market.
"We are not really seeing the number of new listings ramping up as yet," he said. "I think you will see a much stronger re-entry into the market at the end of this month. Evidence suggests that upgraders have already been active (selling to first-home buyers) and investor activity is still low but trending up."
LJ Hooker New Farm principal Brett Greensill said it was finally a return to a traditional spring selling season after the previous two had been lost to gloom.
He said the onset of the global financial crisis in 2007 was "an end to silliness" and had made buyers shy. But an open house last weekend drew 32 groups, the most he had seen in 10 years.
Cathy Richards, of Place Bulimba, said more people were inspecting properties, with 25 groups drawn to an open home last week which led to a contract.
She said momentum was building and there was price growth but nothing substantial, with a property she sold a year ago likely to get about the same price.
First-home buyers don't have long in which to buy before the boosted Federal Government grant runs out.
From September 30 it drops from $21,000 for a new home to $14,000 and from $14,000 for an existing home to $10,500.
The grant then hits a flat $7000 after December 31.
Mortgage brokers report a noticeable spike in inquiries since the start of spring from potential first-home buyers who are worried about missing out on the boosted grant.
Mortgage Choice senior corporate affairs manager Kristy Sheppard said many of those buyers, who were desperate to get into the market, were ill-prepared and did not have sufficient deposit.
About 40 per cent of loan approvals going through Mortgage Choice are to first-home buyers, although upgraders and investor inquiries have also started to build.