HAMMER TIME HAESLEY CUSH

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I WAS talking to an agent this week and he said to me, “There is a lot of pent-up demand for properties in the $700,000s and some of our owners are really getting hero prices” . Holy snapping ducks, I thought, that’s the greatest little real estate spiel I’ve heard. Pent-up demand and hero prices. I thought I should get the magnifying glass out and do some investigating. Being a lazy real estate detective, my search began with the auctions I was calling last Saturday. I had four – two were houses in the early $1 millions and the others around the “pent-up demand” price. Both properties in the early millions had some minor competition but the owners’ expectations and the market didn’t kiss at their places last Saturday. However, the other two auctions attracted more than six registered bidders, opened at $600,000 and sold under the hammer. One in Tarragindi went for $741,000 and the other, at Wavell Heights, $725,000. It’s always interesting to see two different properties on either side of a city receiving the same volume of activity in the same price bracket. It supports the young wordsmith’s proverb. I did some further research on realestate.com.au and of the 35 properties between $650,000 and $750,000 in both suburbs, 18 were under contract. When I did the same search between $500,000 and $600,000, only eight of the 25 were advertised as being taken. This is usually a sign that the general market is creeping up, meaning the owners who have sold the homes for a median price are now looking to upgrade. Think about your area and its median house price, add about 10 per cent and that is likely to be the sweet spot. I expect the median priced properties are also still receiving considerable interest around southeast Queensland. For it to be this noticeable, then the market is moving slowly and quite conservatively. There is an expectation that interest will continue to move up through the price brackets, and up to the prestige markets, over the back half of this year. Haesley Cush is a Brisbane auctioneer and real estate agent. Copyright © 2016 The CourierMail

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