Property Market Hotting Up

It seems the property market is continuing to heat up. Auction clearance rates are up, prices are heading higher, and buyers are starting to become a little irrational about jumping in or risk missing out.

How's it going in your local area?  I invite you to write down the suburb where you live and a short description of what the market is doing price wise.  Let's do a snapshot around the country, and around the world.

Cheers,

Steve McKnight

P.S. To see a FREE short video on my views on the latest property market, visit:
http://www.propertyinvesting.com/newsletter/june08-property-market-update

I believe that 'Heat Up' is perhaps a poor description of the current market trend in my area of Brisbanes Inner South.

The basic laws of Supply and Demand dictate that as available property deminishes prices will be pushed by those people wishing to get into the market.

New Development applications are down and construction has all but stopped.   Most new Developments are being sold out 'Off the Plan' and sure there are some speculators here attempting to cut and run.   Rents are rising to where they should be and the Investors are out in force.   Trying to find property under $350,000 is all but impossible.

New 2 bedroom units (approx 80m2) have gone from an average of around $400K eighteen months ago to over $520,000.

Jon

www.BrisbaneUnits.com

I wouldn't say things are 'hot' here in our area. We're 40kms from Melbourne with a direct line commute down the Hume. Prices are fairly stable though rents are high and rentals are scarce. Some properties sell very very quickly but there are a lot of properties just sitting there for months sometimes more than 8 months before they sell. There isn't much difference in price between a house that needs work and one that is older but in pristine condition. New estates are planned and new releases in old estates are numerous but land isn't selling all that fast either. Housing construction seems to have slowed from frantic to merely fast. In all it seems fairly stable, not down or up just sideways. It is fairly difficult to find anything under $200k with most houses going mid to high $200k to mid $300k.

DMV

Although this isn't specificially in our local area, we did attend an auction in country NSW at the weekend. Quite a crowd attended and the estimated sales price was $180k (this was a 1600sqm block with an abandoned house ready to bulldoze). It sold for $262k to a bidder on the phone. Properties are not hanging around out there and rentals are few and far between.

Hi Guys,
Look out for Childers Qld, here is low end stuff that has risen 50% in the last 12 months and is still rising. With a huge demand on local rentals, do your sums it's all adds up.
Good luck
Shylock

Dear Steve I really cannot believe how ridiculous auction prices are becoming I would like to tell you about 2 examples in Balwyn
The first a two bedroom villa was advertised at $360K plus..this went for $507K and the second a 3 bedroom house advertised for $650K plus went for $905K How can realestate agents be getting it sooo wrong One would almost think they are auctioning a different house than what they advertised with these differences How on earth is one supposed to have any idea. I am trying to stop paying rent, I have a good deposit but as a single income this is quite impossible And when you do think something is in your price range boom out it blows at auction time. Not that the above examples are anywhere in my price range Even private sales (which there are not many) are now becoming like auctions, with one private sale I know of selling for $100K more than the advertised price. The whole situation has gone mad 

A renovated duplex brick edwardian - 3 bedroom on my street in Windsor was listed at 670-720k and unbelievably went for $1.081m on the weekend. That is 66% above the top quoted price. As an owner of a stand alone (i.e. non duplex) equivalent - I was more than a little excited by what happened.  I wasn't thinking of selling, but now i am not so sure.....

ps. Opening bid started at 805k ! 

Being Windsor in the inner suburbs of Melbourne........

Hi all

Definite hot spots in Brisi. I have just cottoned onto Zillmere which has had a significant boom in the last 12 months and in particular the last 3. My partner bought a 3 bed highset for $215k 12 mths ago and from gauging sales prices it is now worth $300k. The blocks that are zoned LMR (multiple dwellings) are being snapped up in this area within hrs and usually 10% more than the asking price!

Cheers,
Matt

I have been doing a fair bit of research around the northern areas of the central coast nsw (just nroth of sydney). alot of people are starting to feel confident that the flat period is coming to an end, rental yeilds have  growing.

I am searching for investments in this region,

**********************************************************
Trust me with your moneyand your life,.... But not your beer or your wife.

Talking about "property boom" happening at places.  Mark & I went to this auction in Pascoe Vale VIC last weekend.  House was a full reno candidate  (no kidding) on a regular building block but located on one of the best streets in the suburb.  It was advertised $295k+ which was verrry cheap for the area.  Several emotional buyers went for it & it sold for $446k in no time. 

Live simply. Love passionately. Laugh heartily.

Hi,

Wait until all the superanuation hype and share market plateau,s. I think you will see some great profits around the country.
On the northside of brisbane where i live their has been some great gains especially around the 10 to 15 klms radius of the city. One of our friends was offered $30,000 more then what she had it on the market for.!!

Dom

I cannot believe what is happening at the moment.  We are in Melbourne and have been keeping an eye on a few suburbs around our area and we are finding that most properties are now going to auction as auctions are bringing in above average prices.  Everything is selling, no matter the condition, at 30 - 40% above price quoted.  I was looking at a property in February this year in the Broadmeadows area (three unit site with knock-down home) agent was struggling to sell it at $220,000.  Last week drove through the area and enquired about a different property in the same area (4 unit site ) and was quoted $430,000.  Guess I should have bought that 3 unit site back in February!

Went to an open for inspection property in Maribyrnong last weekend to see a two bedroom unit which needs major renovation and will be auctioned within 2 weeks.  This property is one street back from the river.  People were everywhere and we had to wait to get inside just to have a look.  I think I can estimate what will happen here yet again.

I am feeling a little unsure about this madness. 

Brisbane / Bayside - selling quick. Prices indicate steady trend up. Anything under 400K sold quick however top properties 1M+ seem to sit for sale for some time...
Reno suitable properties go very quick ...

Hi Steve,
We live in Underwood Qld which is in Logan but on the border of Brisbane, 15ks from the CBD. Townhouses are selling off the plan a 3 bedroom is going for $300,000-$400,000 approx. There are some older Townhouses in our area that are selling for $235,000-$240,000 but they go fast. Houses are the same. Prices just keep on going up,will it stop?

C.F.Davis

Queanbeyan is very hot at present..Units selling for 10% over market. townhouses,anything affordable.Larger,older family style homes are staying put. Good quality reno's are excelling.A very tight Canberra rental market at present.Jerrabomberra next to Qbyn has 6 (SIX) places for rent in a very large subdivision.

Nowra on the south coast is still fairly flat although better properties ignore this trend and have seen some better gains.I checked out a 1680 square block  in nowra cbd with rented house at the front. Good potential to develope but i feel the expected sale price of $350,000 is a bit high.Hopefully the new road connecting nowra to canberra via nerriga will bring in people from the act. This is the case with batemans bay and it has done wonders for property down there.

we have just bought or are in the middle of buying a property in truganina in melbourne. after watching the market in qld, act, nsw and vic we decided to go that way.. melbourne seems to be the land that property booms forgot. everyone has low rent and paying low prices for quality houses compared to their northern neighbours in the same sort of area.

This does not bother us right now as in 10 years im sure it will be a different story, get in whilst the prices are low.

Our house is a 24 square 4 bed ensuite, double lock up garage on big block, 20 minutes direct drive on highway to cbd, next to grammar schools, factory outlets, plenty of shops, 5 km from beach or waters edge.. views of melbourne complete with landscaping, carpet,tiles and wood panel all for $275k all unheard of in my books.....for that in bris and gold coast we would get a 3 bed townhouse with the basics and half the size. even adelaide and perth are out of that league.

In Canberra you would be lucky to get a 2 beddy flat for that price

www.thebettashop.com

Hi all...we're at Barellan point (near Ipswich )...a few weeks ago it seemed all the properties around us were on the market for ridiculous amounts (& had been for ages)...they're all gone now...

Cheers Pat

We have our investment property for sale in Narrabri NSW. 15th June median house price was 190,000 today it's 210,000 Not much of a difference compared to what others have reported, but good for me  Graph shows region on a decline, but Narrabri on a good incline .... Thanks mines

Linda Lane

This is Steve from Hoppers Crossing, in the lower end of the Market prices are holding pretty firm for house and land as there is not much room for them to go down with land prices in the area approaching simliar levels. In the Middle price range there are some real bargains if you are looking to buy your own home, with homes aged 2-10 years in excellent condition on larger blocks going much cheaper than new homes nearby. In the Upper price range they just seem to hold out for ages for the price they want unless as with the occassional one they are priced reasonably.

I hope this helps someone.  Steve Buckham