MARKET REPORT- JULY 2007

Real estate sales in Noosa over the last month have been buoyant with some very good sales in the top end reported right through to the bottom end.

Reports from our colleagues in Melbourne, Sydney and Brisbane report very strong activity with strongly rising prices. These reports have been coming through for about 6 months. Properties in these areas are selling within 30 days with very high clearance rates at auctions.

Noosa is not experiencing this activity and many properties now selling have been on the market for 6, and in some cases, 12, months. What is happening here is slowly but steadily the existing stock is being taken up and not being replaced so the supply factor is steadily diminishing. A sure sign of increasing prices to come and a good time to jump into what is probably the bottom of the market.

Hard evidence of this is at least two waterfront homes selling on Noosa Sound in the high $3 millions and low $4 million range. These are older homes so the sale prices reflect a very high land value content.

At Noosa Waters the bottom end of the waterfront is selling and there have been five reported sales this month. These prices range from $1.4 million to $1.85 million price range. These again are reducing available stock.

Sales in the middle and lower end are also strong and likewise a lot of the unit market is moving and prime positioned units are selling well.

Describing the market overall would be to say it's a balanced market that looks like trending towards a seller's market in the next 6 to 12 months with some pockets still being in a buyer's market mode, for example, units on the south side of Hastings Street.

Little Cove and Sunshine Beach are and have been, very low on available property. Many buyers are frustrated in these areas, not being able to find what they want. In turn this is putting pressure on prices.

Peter Dowling