Tweed housing market heats up
The housing market has had a boost in the past few months, with buyers and sellers emerging from the woodwork to give local real estate agents sales not experienced in two years.
But it is not just the Tweed reaping the benefits.
Australian Bureau of Statistics (ABS) yesterday released data showing the demand for home loans grew by more than five per cent in September in what appeared to have been a last-minute rush by first home buyers to secure the full benefit of a more generous housing grant.
Owner-occupier home loans jumped by a seasonally adjusted 5.1 per cent to 65,505 in September, ending two months of slowing demand.
The proportion of home loans granted to first time buyers was 26.1 per cent in September, up from 24.7 per cent in August.
NSW Real Estate Northern Rivers division director and Professionals Banora Point principal Carl Petersen said business in the area has been powering along in the past three months.
“There has been a good volume of sales,” Mr Petersen said.
“We’ve also had a surprising move towards houses above the $500,000 mark that wasn’t there six months ago.
Mr Petersen said sales had moved towards houses priced between $500,000 and $700,000.
“Some have cracked the $1 million mark,” he said.
“We were used to homes between the $300,000 and $450,000 range. Consumer confidence is back and people are starting to re-enter the market.”
Mr Petersen said he is expecting to see an increase in land sales next.
PRDnationwide Coolangatta agent Jason Abbott said his agency is riding a wave not experienced in years.
“We’re starting to sell the amount of properties we were selling back in 2007,” Mr Abbott said.
“It has been great.”
Mr Abbott said the telltale signs included more participation in weekend open homes and an increase in online enquiries about properties.
North Estate Agents principal Mark Humphries said the effects have been twofold.
“We have the sellers coming to the market that have been waiting and ready to test it out,” Mr Humphries said.
“Then we have the buyers coming in at all sectors.”
Mr Humphries said developers were also putting properties back on the market with corrective pricings.
On October 1 the federal government’s increased first home-owners grant was cut to $10,500 from $14,000 for established homes and to $14,000 from $21,000 for new properties.
The grant returns to its original $7,000 for both categories from January 1 next year.
Data from the ABS precedes the two interest rate increases made in October and last Tuesday.