Putting property prices in perspective

Putting property prices in perspective Geoff Grover - Property Talk - March 2015 Local real expert for Coolum Beach and Mount Coolum. Do we have a hot residential market with rising prices? The national commentary relates to inner city Sydney and Melbourne. but this is far from representative of the nation as a whole with Perth, Adelaide and Hobart very quiet. Roundup: * Investment yields in the capital city top ends simply are not adding up anymore, as reported in the Australian March 7-8 9 (p32) by James Kirby. * Despite the prospect of even lower home loan mortgage rates, the national auction clearance rates remain subdued according to national leading auctioneer Jason Andrew 9th March Newsletter. * Brisbane City Council suburbs - despite the hype, 2010 to 2014 shows sales numbers up 26.5%, prices 7.8% * Previous hot spots in coal centres Gladstone and Mackay have collapsed . * The Sunshine Coast Central Region on the other hand has from 2010 to 2014 seen house sales numbers grow by 40%, but with only a 2% median price growth. Totally different factors apply in each of these markets delivering a variety of results, although the over arching economic environment cannot be ignored. Andrew reminds everybody that the fundamental economic drivers behind falling interest rates should not be underestimated. There are no guarantees that future interest rate cuts will have a positive effect on the property market. Even the Reserve Bank Governor has expressed concerns about the effectiveness of this financial lever. Andrew further points to some sellers reaching ahead of the market with their price expectations in anticipation of future price gains. The editor also reports some fanciful list prices on the local scene, simply not supported by any sales history. It is even more important in this market to base price expectations on a like for like model, ie, an exhaustive review of what the particular local market has achieved. Your local area expert is best positioned to provide this data and develop a strategic market plan that will maximise a sellers price, but remember, all sales only come about via a win-win situation.