House prices in Mackay have recorded their biggest fall in years, by up to 5% on properties valued between $200,000-450,000*. Managing Director of Xcel Properties Kim Clarke – the developer of Mackay masterplanned community Plantation Palms – says that despite the economic slowdown, the slump in house prices is offering increased housing affordability and buyer advantage.
While consumer sentiment on the state of the local economy and the jobs market is at an all-time low, this appears to be putting a dampner on buyer confidence and the good deals available for home buyers.
Mr Clarke says, “Consumers may not realise that the current oversupply in housing is offering more affordable opportunities for homebuyers, especially first time buyers looking to purchase their ideal family home without stretching the purse strings,” said Mr Clarke.
The decline in the sale of average house prices is most apparent on houses valued at under $450,000, and Mr Clarke believes that consumers are now in a stronger position to negotiate a good deal on a home, saying this is influenced, in part, from lower interest rates and reduced buyer competition offsetting housing inflation.
With expectations that the housing market is tipped for recovery in the first half of 2015, Mr Clarke insists that now is the time to buy in Mackay, including its northern beaches suburbs, with local listings offering increased buyer choice and value for owner-occupiers.
Analysis from the property valuation experts at Opteon shows that early signs of housing recovery should kick-in during the second quarter of 2015, as continued strength in coal production encourages a lift in coal prices, which will hopefully stimulate jobs growth in the mining sector and strengthen consumer sentiment**.
An increase in new dwelling approvals is also expected to spike in the second quarter of next year, driven by new homebuyers taking advantage of greater housing affordability that is currently below trend line.
Mr Clarke added that the average value of land prices in the area are historically resilient to variations in market conditions, meaning new homebuyers are likely to be attracted to the long term price stability offered in local land listings, coupled with greater negotiating power on new builds.
“Homebuyers are now in a good position to design and build their ideal home and at a competitive price, rather than opting to buy second hand and renovate, where costs tend to escalate.
“Plantation Palms understands that buyers are looking for value and return on investment from as early as three to five years down the track, which is why we offer house and land packages starting from $364,000. With the Mackay housing market tipped to pick-up in 2015, the value offered for purchaser’s means that now is a good time to buy,” said Mr Clarke.