Ray White Peregian

With the arrival of spring, it will be very interesting to see how the market performs, in what is traditionally, the most buoyant season. The winter market has been very patchy, although some excellent results are being achieved, and despite the shortage of available properties, longer days on market are being experienced. The top end of the market is very slow; with only two sales above $2 million since December 2016, including one last month. One of those properties was sold for $300,000 less than purchase price in 2014, indicative of a possible softening of prices in this sector. There are currently more than seven properties in the Peregian/Marcus Beach area for sale above $2 million. Housing affordability and Australia’s mortgage crisis has been making headlines again in recent weeks; there is ongoing speculation by some commentators of an imminent ‘bubble burst’, as despite low interest rates we have the second highest mortgage debt in relation to household income (outside of Switzerland), with suggestions we are poised for the ‘perfect storm’. However, according to Roy Morgan polling, mortgage stress is currently close to its lowest levels since 2006. Earlier this year, economist Rod Mattock noted Australians now have greater equity in their properties, with a fall over time of those with loan-to-valuation ratios above 90%. It also appears that the heat is coming out of the market in the southern capitals, and this slight cooling will most certainly have an impact on our market place. This is due to the fact that more than 70% of our property listings have been purchased by buyers who have recently sold their homes in the southern cities. Everyone has an opinion on property, and even the experts are divided. Time will reveal all, and certainly the state of the local market suggests somewhat of a slowdown; however, if 2017 replicates the busy spring periods of recent years, we can be confident that the market is still performing in a healthy manner and following traditional cycles. Thank-you again for your continued interest and support, please do not hesitate to contact me at any time should you wish to have a further discussion. Robbie Neller Principal, Ray White Peregian What’s happening in our market?