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