The entire market is being driven by price!
Only yesterday I adjusted the price of a townhouse in Manoora listed at $145,000 down to $125,000 - It has been chaos on the phones. Three interstate offers within two hours. How can this be? The property has been on the market for 12 months! It just goes to show.
From a real estate agents position, the very worst thing that I can do is expose my sellers to a falling market. If you are a seller, listen to the market. Sorry, buyers are in control.
Recent studies show that until a property is within 5% of what buyers are willing to pay, they will basically ignore it, no matter how enticing it looks! You will find that this is why BIG impact real estate companies are selling via the auction method, whereby the property is judged on its merits and not just price. There is nothing like a "cash, unconditional" sale in a time where professional property valuers are confronted with a truly confused marketplace. Many a contract is terminated on valuation. Mortgagee in possession sales at rock bottom prices. An emotional buyer with a real desire to be at a particular address will pay a record price, whilst the real estate agent frantically runs about trying to find solutions to everyones problems!
Cairns unemployment is at 10.3% (Is it ????)....the population continues to grow at 2%. The rental vacancy rate is officially 1.8% (though I firmly believe it is now below 1%). For forty years, Cairns has run at a sustainable average of 2% until the GFC hit us five years ago. Low interest rates are certainly having an effect.
Its an exciting and opportunistic time for investors, with rock bottom prices, sky rocketing rents and not a great deal of residential developments in the future. The perfect storm is brewing!
Have a great week
Debbie
