FIGURES released by leading property website www.realestate.com.au reveal that property prices are rising.
The past 12 months have seen strong growth in Australian property values, with figures showing an increase of 5.4 per cent in home values across the country over the past 12 months.
Nationally, auction clearance rates are up, remaining above a very healthy 75 per cent – substantially higher than this time 12 months ago and yet another indication of returning positivity in the market.
In New South Wales, residents’ sentiment towards housing affordability is slightly improved on this time last year.
About 67 per cent of residents believe their financial position would improve over the next six months, contributing to their improved perception of affordability.
As per the national results, in suburban areas the perception of housing affordability has also improved.
The demand for property in Port Macquarie is strong, with eight people looking per house available on realestate.com.au
Local observations back up the realestate.com.au figures. Many open houses last weekend saw a bumper turnout of buyers, with real estatage agents reporting keen buyers and an increasing shortage of listings in the popular $300,000 to $600,000 price range.
Port Macquarie real estate agent Tom James, from Port City Realty, said he was not a big fan of graphs, charts and percentages, which he thought could just be confusing. Instead, he looks to for sale signs as a good barometer of the state of the market.
“You only have to pick three or four streets and then monitor the sign action in those streets,” he said.
“It may not sound very scientific but it works. There are a lot more sold signs now than there were six months ago and the sold sticker is appearing a lot quicker now.
“Demand currently outstrips supply and when that happens prices rise. We got to a stage about 12 months ago when owners were withdrawing their properties from sale because of a general lack of market interest and what they considered low offers. In a lot of cases the offers were less than replacement cost. Gradually since that time interest rates have dropped and market confidence is returning.
“Position, position, position, goes the old adage, but really it’s position, interest rates and timing.”
