Rush for affordable homes

FIRST home buyers have stormed the Queensland residential property market, with affordable homes now the name of the game.

FIRST home buyers have stormed the Queensland residential property market, with affordable homes now the name of the game.

This segment's long-awaited return to the market means that after years on the wane the number of affordable homes sold has surged over the past year.

Real Estate Institute of Queensland (REIQ) chairman Peter McGrath said first home buyers were taking advantage of the lowest interest rates in a generation, thanks to the First Home Owner Boost and softer house prices.

“Thousands of Queenslanders have entered the market over recent months and the resulting surge in affordable home sales shows that the majority are considering a future of higher interest rates and are buying within their means,” Mr McGrath said.

“As first home buyers are active in the market existing homeowners can now trade up, with many also buying in the popular sub-$500,000 price range.”

In our region, centres such as Sarina, Slade Point and South Mackay have all recorded an increase in average house prices.

The figures represent average house prices for the 12 months to the end of 2008.

Sarina's median house price is $299,000, or 3.1 per cent higher than it was by December 2007, while both Slade Point and South Mackay have a median of $350,000, an increase of between 2.3 and 2.9 per cent.

Given the lower prices overall, Mr McGrath said, 94 per cent of homes sold outside south-east Queensland went for less than $500,000 over the quarter.

Agents are reporting strong demand in the affordable end of the market and - in stark contrast to 12 months ago - a lack of available stock is sometimes now an issue.

“Some affordable homes - depending in which town or suburb they are located - are only taking a day or two to sell, which is a great result for sellers and for the market generally,” Mr McGrath said.

“The First Home Owner Boost initiative has been a raging success that has allowed thousands of Queenslanders to finally become homeowners while helping to underpin our economy.”

Originally published as Rush for affordable homes