D Day for stamp duty passes – surprise ! Still strong interest in Townsville Real Estate

Despite the predicted catastrophe Monday brings another day – and still solid enquiry. As did the day before yield great numbers through most open houses.

It was easy to get up in the hype – increased fees bring buyers forward – but as mentioned recently it only effects a small number of buyers who KNOW they were going to be effected.

There is no doubt some people will have recriminations – take the buyer who made an offer on a house which was on the market for mid $800’s. Believing the hype of “it’s a buyers market they make an offer well under asking price (the home started at $920000 and eventually (after months of marketed sold for $855000). It went to auction (surpirse – did not sell) and after months more of marketing (and drawing good interest -sells at $75000 above there offer.

They were not wrong to think they could steal it so to speak – believe what you read – “the sky is falling in”. But one factor missing amongst buyers is that quality stock still brings a premium, and whilst owner was asking above replacement cost initially (they may debate this as land costs are what are under pressure and sometimes that is hard to determine in a select area where you can’t buy similar land), once the house got in “the zone” interest remained strong.

So the house sells – one happy buyer one happy seller and one who missed out. And the consequence is that the cost of buying the same home now $16000 more expensive, and the costs of others in that range also more expensive. But they are still looking – they have not left the market and they will buy – higher stamp duty or not.

And that’s the point in all this – first home buyers -no worse off – investors no worse off – people buying land no worse off – if they build in the short term $10000 better off .

I am not predicting a boom – but when  someone is ailing a little – a shot of steroids (interest rate cut) will bring a sense of well being to the market. And of course when prices hit a low point (one house in Rasmussen marketed at $220000 buy another agency received multiple offers above the asking price – the pain and negativity suddenly disappear and the buyers attack knowing well priced (under priced stock).

Townsville property has reached a price where people are saying it’s time to buy – and that means the shoots of confidence are back.

Graham Lynham