Property Point

“In summing up, it’s the constitution, it’s Mabo, it’s justice, it’s law, it’s the vibe. And, no, that’s it, it’s the vibe. I rest my case.”

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The quote is from the Australian film classic The Castle and is taken from the memorable courtroom scene.  

“It’s the vibe” is now a commonly quoted line and it could in many ways be used to describe the current behaviour of the Australian real estate market.

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In summing up, it’s inflation, it’s interest rates, it’s the Iran conflict, it’s the price of fuel, it’s cost of living, it’s the vibe.

The vibe is spread and reinforced on the nightly news and there is no doubt it is having an impact.

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Herron Todd White property valuers recently released their October review and it gave a good snapshot of the state of play for the national property market.

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The review covered off on some of the big factors at play:  

“National dwelling values fell 3.7 per cent over the September quarter, sales volumes are more than 17 per cent below last year, and the median property now spends 47 days on the market, roughly double the time it took a year ago. Tellingly, fewer owners than usual are listing at what should be the year's busiest time. This isn't a market flooded by forced sellers. It's one where buyers have stepped back,” the report said.

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What is clear around the country, and in Mackay, is that there are great opportunities, particularly for first home buyers.

The HTW report says: “Conditions remain favourable for first home buyers in several markets. As prices ease, entry points are becoming more accessible, and a pullback in investor activity is reducing competition at the lower end of the market, where first home buyers and investors typically compete most directly.

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“First home buyers need to carefully assess competing factors. A lower purchase price today may be attractive but is it an indicator of limited capital growth? Properties in fringe locations are more affordable, but are new owners of thoseproperties facing significantly increased living costs as, say, fuel prices remain high?”

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Fringe locations are more of a consideration than they are in Mackay as we don’t have the travel distances that the larger cities have to manage.

But it is clear that there are some fantastic opportunities on the table for buyers in Mackay. It is true that the investors who were driving the market over recent years have definitely pulled back, however we agents have started getting calls from buyers agents who have clients who see value in the Mackay market.

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The Mackay market is not suffering the same way as other southern markets and I only need to look at my open house numbers at the weekend to show there is still good buyer interest. Two of my open houses had seven groups at the open homes and one of those properties had another three private inspections in the following couple of days.

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Buyers are looking and engaged and many are ready to snap up an opportunity.

It will be interesting to see if those investors do start coming back into the market. For them, it’s all about the rental yield. With prices down a bit the rental yield creates a very good return for investors.

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As agents it’s our job to get the best price for our clients, the sellers. However, we would all love that buyer to be a local rather than a southern investor.  

But “the vibe” is having an impact in Mackay as it is elsewhere and it could mean that some locals again miss out on the opportunities in the current market. Nothing to panic about but people who don’t act because of the vibe could end up regretting their delay.

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How many times did I hear over the past few years?: “We really should have bought a couple of years ago when the market wasn’t so hot.”

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