Signs of a Turn In Cairns

What an exciting month this is shaping up to be in our Cairns marketplace! There has been an absolute buzz about with a big hit of pent up buyers slamming the market and snapping up bargains from the 1^st of July. 

As expected, the reintroduction of the Owner Occupier State Stamp Duty Concession has certainly given us a leg up, interest rates remain totally affordable and the lack of stock continues to frustrate buyers. It is interesting that many buyers, many of whom initially appear quite arrogant in the belief that they are indeed in control of the market, lose the smug smile, turning to dismay as multiple offers  begin to surface on well priced properties. Believe me, the majority of agents dread the multiple offer situation as it is always the real estate agent perceived to be the bad guy who has to give the bad news to the buyers who miss out! Several buyers are now missing out on their dream homes hoping prices will continue to slide.

I’d love a dollar for every person that mentions “I’ll just wait until the prices drop further, the owner will be forced to drop their price”.  It’s a tough call. Will they drop further? They could. What effect will the National and International economy have on our market?

Reports from America are clearly showing a marked improvement in their residential markets…you would imagine that would be impossible! Unbelievably, prices are actually rising in parts of America, sales are increasing.

Let’s not get too excited. The pace of recovery will be slow, the prices of many homes will continue to decline. Hundreds of people in Cairns remain underwater, owing more on their homes than the homes are worth, and unable to sell. A setback in a fragile economic recovery could easily reverse the situation.

Compared to other investments, real estate is still the safest bet of all. There are not a whole lot of places to put your money. The marked increase in Self Funded Superannuation Trusts purchasing properties in the past few months tells us the story.

It feels very much like we have hit the bottom in Cairns and we are starting to come off that bottom but,  we are all a little nervous about that word “recovery”.   

Have a great week!

Is this the "sign of the times"