Market conditions in Burnie, on Tasmania’s North West Coast, have steadied which will continue into 2013, as a result of low consumer confidence levels and lack of buyer incentives, but will pick up as the year progresses after reaching the bottom of the property cycle, according to the First National Real Estate 2013 Property Market Outlook.
The Outlook, released recently, is based on a survey of the 400+ member network, drawing on its experience at a grass roots level and providing insight into what member agents expect the market to do.
“The most significant factor affecting the North West Coast property market is the lack of confidence relating to the Labour/Green Government.”
According to the Outlook, property stocks are expected to increase, while the number of days a property is on the market should hold at current levels, showing the market is stabilising.
A lack of buyer and building incentives, coupled with the increasing number of competing properties available for sale will place downward pressure on property prices in the state.
“This presents some excellent opportunities for upgraders who are expected to show the strongest growth in activity for the region, driven by improved affordability and lower transaction changeover costs,” Ms Lamprey said.
There is an expectation the rental market will ease, as overpricing and job losses force people into moving away from the North West Coast region.
These job losses, along with rising living costs are expected to produce an increase in mortgage defaults for the region.
Interest rates are expected to decrease further, but Ms Lamprey does not believe this will necessarily translate into any real change for the market.
Solar power continues to be the most sought after energy efficient feature of a property in the North West Coast region.
“Conditions on the North West Coast will remain the same unless change occurs at the political level such as a new state government comes into power, so that stamp duty can be abolished, incentives for building and buying introduced and investors return”.