Daniel from One Percent Property here with your weekly property market update.
This week I discuss:
- Big results continue to roll in for Kedron & Surrounding Suburbs!
- One Percent Property local activity update
- What is in the media this week?
- Is property really that unaffordable or are low interest rates saving the day?
Do you have any questions? Please give me a call - 0424 585 391
Would you like to know what your property is worth in the current market?
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Hi, this is Daniel from One Percent Property here with your weekly market update on Friday, the 13th of November, 2020. So, what has been happening in our beautiful area in our state and our wonderful suburbs over the last seven days in property? So in Queensland, over the last seven days, we had 1,374 sales. That's a really great result, showing a lot of properties are moving hands and a lot of obviously good results for vendors across the state. Auction clearance rate of 52%, which is up on 42% this time last year, again, showing good strength and good buyer activity in the market. In Kedron and the surrounding suburbs, things are obviously going from strength to strength. Anyone that works in the area will be able to tell you that. But in the inner North this week, we had 35 sales, which is a really, really fantastic result. Again, it shows a lot of properties moving hands and some really great pre-Christmas activity.
A couple of notable sales in the area, 16 Browns Dip Road in Enoggera sold for $900,000. That's essentially a very rundown old house on a bigger lot, but shows a great result, great strength in that price range. 8 Bonython Street in Windsor, that one achieved $1,560,500. Again, that's a fantastic result, shows good strength and good activity in both the mid-range market and also the higher end market in our local area.
At One Percent this week, we have launched, number 1/246 Pickering Street in Gaythorne. It's a beautiful townhouse. It's in at Offers Over $409,000, which is really great value for the area, three minutes walk to the train station. It's near shops. It's near schools. It's near parks. It's a fantastic opportunity for investors and homeowners alike. So if it's similar to what you're looking for, please give me a call, 0424 585 391.
This week, we also unfortunately had a contract fall through. This was the offer on a 5/54 Sixth Avenue in Kedron, put under contract in three days last week. That didn't end up going through. But during that time, when we were under offer, I made sure to continue to talk to buyers, made sure to continue the process. That contract fell through this morning at 10:00 AM and we're back under offer with a new contract at basically the exact same price by 3:30 this afternoon, which shows how important it is to maintain the sales process and keep talking to buyers until you go unconditional. A property is not sold until that contract is unconditional. So, it's important not to get complacent and lazy. We're also launching over the next couple of weeks a stunning cottage in Kedron, beautiful home. It's got a separate studio or office out the back. It's on a 600-plus block, really, really well-renovated. Looking forward to bringing that to you and showing you that property soon. If you're looking for that sort of home, please get in touch, 0424 585 391.
In the news this week, everything is positive again. It's really great to see that all of the bad news bearers had disappeared. Everyone's talking good things for the property market heading north over the next 12 to 24 months. So, one really big thing I noticed this week is that distressed sales are down to pre-COVID levels. So, a distressed sale is when a vendor has to reduce their price and sell at a price that they're really unhappy at and obviously, a lot of the time, they're losing money at. Now, before COVID, in February, it was 3.2% of the Brisbane sales would cost as distressed sales. In October, that was 2.5%. So, it's dropped by almost an entire percent compared to pre-COVID levels, which shows really that we are rebounding well and the market is staying strong.
Another thing I read this week, which I think is really, really important, I guess people forget about it quite a lot, is that our cash rate now is at record low levels. So, what that means is when people talk about housing affordability crisis, when they say our people can't afford to repay their mortgages, the issue there is that the actual interest payment on mortgages is basically no higher than it was 30 years ago. Because 30 years ago, the price of property might've been $50,000 or $60,000. But, the interest rate in 1990 was 15.5%. Okay? So, your bank mortgage rate was probably 17% or 18%. And now, the interest rate or the cash rate is 0.1%. That is 155 times lower than it was in 1990. The bank cash rate might... The mortgage rate might be 2%, 2.5%. So as prices have gone like this, interest rates have gone like this and we end up with the interest repayments being basically exactly the same as they were 30 years ago.
Obviously, deposits and principal payments are higher. But if you have an interest-only loan on your property, your interest rate repayments are basically going to be exactly what they were 20 or 30 years ago. So as far as Brisbane goes where our wages are a lot higher compared to our property price than, say, Sydney or Melbourne, I am confident that we are in a good position where people are able to repay their mortgages and things are actually looking very, very positive. I'm really excited to see what happens over the next 12, 18 and 24 months, especially in the inner North area where there's fantastic growth. There's so much interest and I really believe there's a lot of exciting things to come.
Thank you for tuning into this week's property market update. If you would like to get an update of this specific value of your property based on all of these fantastic sales that are going on in the area, please go to our website linked below, www.onepercentproperty.com.au. There's a quick form there. Send me a few details about your home and I will get a property report out to you within 24 hours to give you an understanding of exactly where you stand in the current property market. Thank you so much for tuning in. I hope you've had a fantastic week so far and I hope the second half is even better.
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