The Cairns property market is on the “start of recovery” after a whirlwind few months of rises, declines and rises again.
Property valuers Herron Todd White say a “perfect storm” had Cairns placed at a declining market on the national property clock in their residential report, after the June report showed the city was set for a rise.
Now, the latest report released on Friday showed Cairns was on a “start of recovery” on the clock.
The Cairns property market is back at a recovery phase after a whirlwind few months of rises, declines and rises again. Picture: iStock
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The report’s monthly property clock takes into account many factors, including the number of listings, sales, prices, and demand before providing a general overview of a city’s real estate market to determining where it sits on the clock.
Herron Todd White Cairns research consultant Rick Carr said changes in consumer confidence were behind the rapid changes where the city completely bypassed “peak of the market” on the clock.
He said the region hadn’t experienced a peak since 2008.
Research Director Rick Carr from Herron Todd White says big swings in consumer confidence has seen Cairns jump around on his firm’s property clock. PICTURE: STEWART McLEAN
“Generally speaking a rising market is a good balance between prices, sales and buyers,” Mr Carr said.
“The peak of the market is generally skewed towards sellers with strong prices,” he said.
“The July report (which reported the decline) was based on activity in April where confidence was down.
“Although during this whole period we’ve seen house prices hold in Cairns, it was a perfect combination of listings falling away and demand falling away as well, equally.
“Confidence to list houses was low because people were afraid of the unknowns of the market but also because they didn’t want to list a house and have people wandering through it at the time.”
He said the latest report reflected a boost in confidence as a result of easing restrictions including the state border reopening, leading to an increase in listings and sales with the median sale price for houses in June ending at $410,000, for units at $220,200 and $200,600 for vacant land.
“Overall sales are still down for this time of the year but we are rising out of the slump. How long the rise lasts (with coronavirus) is the question.”
The report said the slump in April had turned around May and June.
The post The up and down nature of Cairns real estate appeared first on realestate.com.au.