Cairns Property View July 2018

July 2018 Cairns Property View

Happy New Financial-Year!

Word on the street is that there are early signs of a pick-up in real estate sales volumes, however individual property prices have varied by no more than plus or minus 5% from their prices twelve months ago, and on balance have remained static.

As Cairns tends to follow the capital city trends, in a recent website article from theurbandeveloper.com, ANZ senior economist Daniel Gradwell predicted that falling house prices in major cities will be “quite a bit larger” than expected, with the market set to stabilise later in the year.

Also the Housing Industry Association’s New Home Sales reported new house sales fell in each of Australia’s five largest states during April. Senior economist Tim Reardon from the Housing Industry Association said that the market was well past the peak of activity.


“The most recent concern is that access to finance has become a constraint, as banks exhibit greater caution, due to declining house prices key markets. An increase in collateral requirements for borrowers is an obvious reaction to falling house prices, as banks seek to minimise risky loans,” Reardon said.

Personally I think that the Banking Royal Commission has a lot to do with the banks tightening up on lending criteria at the moment.

Cairns Regional Council has adopted a balanced budget worth $301 million for the 2018-19 financial year. With a $165.7 million capital works program and a modest rates rise matching CPI, the budget focuses on providing quality infrastructure, while enhancing liveability and providing opportunities for regional economic growth. See more

Regards,
Daniel Sheehan
0409 265 326

 

 

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