Another year has gone by and many people would be wondering what we can look forward to in 2014?
- Tags: gold coast property, property trends
2013 finished a lot better than it started, prices have recovered to be somewhere around the peak of 2007 and sellers are entitled to be optimistic but, it is still a buyers market.
Several things stand out as causes for optimism.
At the same time besides China there are several brakes on the market.
- Low interest rates
- Increasing buyer enquiry
- Australian dollar lower
- Tight vacancy rates
- Less private treaty discounting
- Reduced time to sell
- Some price growth.
- Interest rates.
- Affordability as prices rise.
- The Gold Coast unemployment rate.
- Population increase.
Banks are being required by the Reserve Bank to stress test mortgages and we are finding that if they do not believe that borrowers can handle at 2% interest rate increase they probably will not lend.
Valuers seem prepared to accept the shift in the market and are being a little more reasonable about seeing the prices we are achieving as market value. For the past few years if the Valuer decides that we’ve achieved a price that may not be duplicated in a forced sale he will value it at less than the contract. This can be fatal to a low deposit loan.
Gold Coast tourist businesses have been reporting a good year brought about in large part by the reduced overseas buying power of the Australian dollar and at long last low interest rates are helping the building industry to rev up.
When these two industries are going well the Gold Coast is going well. It is timely because it seems that a lot of the resource construction jobs are coming to an end as these projects finish or in some cases are being deferred because of high construction costs.
We had one case last week where we sold property to a family where the husband was employed in the resource sector and they had to terminate because he was retrenched the next weekend. We have since resold the property to a local buyer.
Whenever people are coming to the Gold Coast or coming back to the Gold Coast it puts upward pressure on property prices and rentals. Right now our Property Management department is extremely busy, since January 1 we have had 64 applications in 24 days and newspaper reports indicate this is widespread on the Gold Coast.
by David Hamilton What we can look forward to in 2014
palmbeachfn.com.au February 2014
First National Palm Beach
15 Palm Beach Ave Palm Beach, Queensland 4221
Phone: 07 5559 9600