07 Mar 13
The Noosa market continued to be strong in February, we have experienced an increase in turnover for six months now. We are experiencing shortages of property types across several areas of the market, particularly waterfront, Little Cove and Sunshine Beach.
We expect a slowing of sales as choice narrows,those considering selling, happy with the current prices can put their property on the market with a lot less competition.
So why is the property market starting to move across the country?
My thoughts were reflected in some comments by Sydney agent John McGrath, I think he has said it perfectly
Here’s a list of my top 10 reasons why the market will grow in 2013.
1. The Australian share market is recovering quickly and this will generate (and replenish) great wealth for many Australians. We’re getting closer and closer to the important psychological benchmark of 5,000 on the All Ords and ASX200 indexes, with the ASX200 up almost 15 per cent since last November – a very impressive growth rate.
2. China is on an upwards surge with an 8 per cent anticipated growth rate this year (and beyond) and we will benefit more than any other country.
3. We have record low interest rates with existing and new borrowers reaping the benefits of property being more affordable.
4. We have a nationwide housing shortage and will for some time, so demand will outstrip supply in an improving sellers’ market.
5. Cash and term deposits are becoming far less attractive and many people will see the time is right to switch from cash into growth assets.
6. Rents will continue to climb due to the housing shortage, providing investors with increasing yields over the next few years. There is currently plenty of opportunity in a variety of markets to achieve neutrally-geared or positively-geared investments that will pay for themselves.
7. Self-managed super funds (SMSF) investing directly in residential property is the biggest change I’ve seen in the past 12 months. People are becoming more and more comfortable with the idea of managing their own super and investing in bricks and mortar over shares.
8. Luxury homes are back by 20 per cent - 40 per cent in value and will provide great buying for the recovering professional market buyers.
9. Most experts are tipping a change in Federal Government when we go to the polls on September 14. This will give great confidence to the business community
10. As all of the above happens in our connected community, we’ll see a surge of confidence and ‘fear of missing out’, which will stimulate continued investment over the next three to five year cycle
I can’t emphasis enough how important it is to get ahead of the pack. Don’t wait until everyone else is in the market. There is a herd mentality in real estate – much like the share market, where people tend to wait and rush into action when they see other people doing the same. By then, prices will already be moving and competition will be strengthening. If you’ve been waiting for a while to make a purchase, don’t delay it any longer
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