Indicators showing Gracemere will boom
GIVE IT two years and Gracemere will be in the midst of a strong real estate rise says agent John Neumann.
In the last fortnight around 15 properties have sold in the Rockhampton region for under $280,000.
Mr Neumann, principal of Discover Real Estate, based in Gracemere, sold a three-bedroom home last month in Abbey Dr for $195,000.
He confidently believes this would be one of the last properties to sell for a cheap price in Gracemere.
"You won't see under $200,000 again for a three bedroom house particularly something built in the last 10 years," he said.
Last year's median price was $265,000 and it is now $262, 500 but Mr Neumann expects it to increase and not go any lower.
"All the indicators are we are loooking for an upwards in price," he said.
"It won't go down again, I think that's the last of those properties at that price."
Four bedroom homes are looking at prices of more than $250,000 and properties that are reasonably priced are being picked up quickly.
"We've come off a five year downturn and only just seen a stabilisation of the market, we haven't seen a rise yet," Mr Neumann said.
"As we move forward, that will happen."
This year so far, Mr Neumann has sold four properties over the $400,000 mark - compared to only two he sold in the whole of 2018.
The easy living and only one traffic light are an attraction for buyers to come to Gracemere.
"That's very positive, people are seeing Gracmere as a preferred destination," he said.
"It's close enough to have all the facities and generally new houses here.
"In terms of where the new houses are built we are an attrractive propositon."
The typical demographic buying in Gracemere is working families and the properties in the higher brackets tend to be those over 50.
"We have interstate buyers looking here.... yes we are cheap but the pontential is there," Mr Neumann said.
"Jobs are the thing, most people that come here are working families and one of the couples usually works in Rocky,"
Mr Neumann predicts it will be a "slow take up" to rise but it will happen in the next two years.
Another indicator leading towards this is that time on the market has reduced.
It is now an average of one month on the market, opposed to previously being three months.
Now the banks have lifted the high risk off Gracemere, more people are coming to the area as well.
"The interest rates are very low, it used to be 30 per cent deposit," he said.
Rental vacancy rates are also tightening as the market goes "gangbusters".
Mr Neumann said they are looking at a 10 per cent rent rise across properties with near zero rental vacancy rates.
"We have the newer style houses so they tend to be more active on the rental market," he said.
"I see positive things coming from Gracmere in the next couple of years."