RPData posted an interesting article on their blog recently that compared the two “post GFC” recoveries in the national housing market. If you are interested you can read the full article here.
The short version is that the current housing recovery (2012/13) is not as strong as the one that took place in 2009/10. Whilst the two recoveries are virtually identical in terms of auction clearance rates and how long the average property takes to sell, vendors are having to discount their initial asking price by larger amounts to achieve a sale, hence the growth in price is more subdued.
RPData put this down to the 2009/10 recovery being driven by first home buyers whereas the current one is driven by investors. First home buyers were at the time acting with the benefit of a generous – and soon to be scaled back – first home buyers grant, whereas investors tend to be less emotional in determining the price they are willing to pay.
The housing market on the Killcare Peninsula rarely mirrors what is happening nationally for a variety of reasons. That said, we have definitely noticed a strong increase in investor activity recently, primarily in the form of holiday rental properties and interestingly it is across all price brackets.