Cairns Market Month in Review – May 2014

The Cairns market is consolidating its recovery and 
is continuing to build in momentum: Sales activity 
overall grew by over 40% between the December 
quarters of 2011 and 2013, but house sales cooled 
somewhat in the first quarter of 2014 attributed to a 
shortage of properties on the market rather than any 
abatement of demand.
Stronger demand is filtering through to higher 
property prices, which combined with increasing 
turnover at the higher end of the market, is leading 
to higher median sale prices. The Cairns median 
house price trend stood at $379,000 in March 2014, 
which represents a 4.7% upward movement since 
March 2013. Even so the latest median house price is 
still shy of the 2008 peak.
The supply of property on the market continues to 
shrink. Agents are reporting difficulties in attracting 
new listings at present, as even though there is a 
pent up supply of homeowners wanting to sell, they 
are now seemingly hanging out for the market to rise 
further in prices.
Other market metrics, like average number of days 
on the market and average vendor discounts, are 
also shrinking as the market moves from the buyer’s 
market that has been evident over the past five years 
into one where there is much more balance in market 
power between buyers and sellers.
Our overall expectation is for the momentum in 
the market to maintain for the remainder of this 
year. There is likely to be further price acceleration 
which will redress the supply of listings on the 
market, especially when prices once again hit the 
psychological level of the 2008 peak.

    Posted by  Angela Capitanio