Younger buyers boost home sales
January 23, 2012THIS year will herald the return of first-time homebuyers to the market, northeast real estate agents say.
But do not expect to make any big gains if you put your home on the market in 2012, as agents say significant growth is still three to five years away.
In the past two weeks, Ray White Northeast agent Shane Illman has sold four houses to first-home buyers and said he expected the trend to continue.
“This year I have seen a big increase in the number of new homebuyers coming to open inspections,” Mr Illman said.
“I expect that to continue during the year but it depends on the banks as well.
“You need bank support for home loans in order to get new homebuyers in the market.”
Mr Illman said that 2012, like 2011, would be a buyers’ market.
“If buyers can hold on to their houses for three, four or five years, they will definitely see some growth in the property value,” he said.
“But we aren’t going to see any quick gains in this market.”
As of September 2011, Vista, Golden Grove and Holden Hill were the best performing suburbs reporting increases in house prices of 13.9, 10.6 and 7.3 per cent respectively.
Highbury reported the biggest decrease in house prices of 4.3 per cent, while Modbury and Redwood Park both dropped 3.9 per cent, according to RP Data.
Toop & Toop Golden Grove agent Len Allington said buyers should continue to focus their attention on properties in Golden Grove in 2012.
“The suburbs that have seen growth have seen it for a reason and that will continue,” Mr Allington said.
“Good infrastructure, schools and parks all make a difference.
“This year I think we will see some of the older homes in Golden Grove come on the market as older owners downsize.”
Brock Harcourts Gold director Andrew Simpson said 2012 would be a year of stability.
“Correctly presented and well priced homes will sell,” he said.
Investing in the future
TROY and Jessica Stearnes were thinking of their future when they decided to build their home in Golden Grove.
The couple, who bought land at The Settlement development in 2008, moved into their four-bedroom, two-bathroom house a year ago.
“We have always loved the northeast and we wanted to be close to our parents,” Mrs Stearnes, 24, says.
“We also wanted to be close to the schools here for when we have kids.”
The pair spent $500,000 on their 649 sq m block and home.
“We spent the extra money and got a larger house because we want to remain here for the long haul,” she said.
“Golden Grove is where we want to raise a family.”
Mrs Stearnes said the suburb’s stable house prices were part of its appeal.
“We always knew that Golden Grove would remain stable or increase in worth and that is part of the reason we built here,” she said.
Mrs Stearnes listed good public transport, shopping centres and lots of open space as other factors.
“I work in the city and I can get on the O-Bahn quite easily. We just love it here.”
Source: Leader Messenger
