September 2009

Market rallies as Spring sets in  – We`re well and truly into the busy Spring selling period now and it`s heartening to see how the market has rallied. Fortunately the effects of the global economic crisis seem to be less intense and shorter lived than had originally been expected.

Gold Coast News Business Editor Nick Nichols recently wrote that according to a leading forecaster, the global economic crisis may very well put the Gold Coast in a sweet spot for prosperity. Demographer Bernard Salt revealed that the shakeout had placed the tourism strip in pole position to benefit from a new world order that has shifted financial power to East Asia. He said that since the economic meltdown, the traditional financial hubs of New York and London were bowing to Shanghai, Hong Kong, Singapore and even Sydney. He foresees Australia trading and leveraging its resources into the Asian empire over the next 50 years, with Australia also trading its `lifestyle`. "That`s the global positioning the Gold Coast has to offer," he said. "The Gold Coast owns lifestyle on the Australian continent."

There`s definitely a more positive sentiment out there in the market. Good quality stock in good areas is attracting plenty of buyers who seem ready and willing to spend again. Our appraisals have risen significantly, we`re seeing more people through open homes, more contracts out on properties and our average days on market has decreased. The clearance rate at our last auction night was an impressive 90% under the hammer, which is great in any market.

Encouragingly, there`s also been some significant movement at the top end of the price spectrum with a number of multi-million dollar sales between $4m and $9m in the exclusive Mermaid Beach area. It`s always a good sign that things are getting back on track when we see confidence returning to this end of the market.

We`re also expecting to see a flurry of first homebuyers making the most of their last opportunity to benefit from the Federal Government`s Boost to the First Home Owners Grant. This is set to half by the end of September and be completely rolled back by the end of the year, giving first time buyers only a few more months to take advantage of an incentive which has really helped to prop up the property market though some of its leaner times.

Looking at the general factors influencing the market, it appears that the overriding opinion among top economists is that interest rates may be on their way up by as much as 2% over the next two years. While this isn`t great for homebuyers, it does signal a general overall economic improvement.

If you`re thinking of selling, you still have time to get your property marketed and sold before Christmas, so now`s the time to get the wheels in motion.