THE Gold Coast’s turbulent real estate market is out of the white wash and into the shallows with more homes selling, prices slowly improving and less stock on the market.
An analysis of market figures from RP Data comparing June this year to June 2012 reveal a rise in recent sales, a stronger median sale price and buyers competing for less homes, creating a magical trifecta of improved conditions.
A snapshot of the week up to June 19 revealed 9006 properties were for sale in the Gold Coast region, compared with 11055 that time last year, and of those 1306 properties in the popular $300,000-$499,000 are currently on the market, compared to a whopping 3930 last year.
According to Herrod Todd White’s Residential Month In Review report for August, the Gold Coast’s market bottomed out in the first six months of 2013, evidenced by a significant increase of buyers in the marketplace compared to the past 12 months.
“Agents are reporting significantly higher traffic through open houses at all ends of the market and there are now fewer mortgagee in possession and receiver sales occurring than in 2012,” the report claimed.
“Agents are also reporting low stock levels, especially in the under $700,000 price bracket.
The report said more investors had moved back into the market and the $1-$2 million price range and prestige unit market had bottomed out and levelled.
Harcourts Coastal managing director Dane Atherton echoed the findings, reporting strong transaction levels in the lower to middle housing sector and movement in higher end waterfront homes.
“In that (lower) sector it’s as good as sold,” he said.
“That log of stock from six months ago has been cleared … listings are more competitive.
“And I think price growth is going to come.
LJ Hooker Nerang, Coomera and Pacific Pines principal, Shane Colquhoun, said the rise in buyers and drop in stock summed up their view perfectly, with the market considerably better than a year ago.
“You are getting about four to five times more registered bidders at auctions now,” he said.
“We have definitely seen prices improving on bottom of market stock too.”
Mr Colquhoun felt it could take six months to see a price rise, but once the election and another rates drop were out of the way it would come,
For buyer Andrew Coates, it took a matter of weeks to recently sell his unique Coomera Waters abode despite being warned it could take a year.
“One agent did say it was taking an average of 12 months to sell homes like this … we only had it on the market for eight weeks,” he said.
I was surprised it sold that quickly given the price bracket ($700,000-$800,000).
“And we didn’t have to discount it to sell.”
Mr Coates put the success of the sale down to a top real estate agent, the fact that his property was unique and the changing market.
“That was our third home we have bought and sold … and it seemed to me that this one was the easiest to sell,” he said.
“I was very pleasantly surprised by the whole experience … it really showed to me that things have picked up and houses are selling … I think it’s actually a good time to sell, it’s not a hurdle anymore.
Source: Sarah Webb www.goldcoast.com.au