Property market on the boom side of seven year cycle
CLARENCE Valley real estate is certainly hitting its straps after a crash in the market at the back end of 2009 and nothing exemplifies it more than real estate agent Stephen Ebeling's latest sale.
Mr Ebeling put a top-end Grafton property on the market and within 48 hours offer and acceptance had gone through at more than asking price.
"The market is good, it is the best we have seen it since 2009," the agent said.
"Historically speaking the real estate market is normally a seven year cycle between boom and bust. We are a little bit late on cycle but it is certainly happening."
Mr Ebeling said despite the major infrastructure changes on the horizon for the valley, these changes are not driving the current market.
"There is talk about the bridge, the highway and the jail driving the current boom, but that is not correct," he said. "It is too early to say those factors are driving it.
"It is a normal economical cycle between boom and bust and what is more likely to be driving it this time is the interest rate cycle.
"Interest rates are at a historically low price, a lot of investors are getting back into the market."
Ray White Yamba principal Daniel Kelly agreed with Mr Ebeling and said the market really started showing signs of improvement when investors jumped back in.
"I think it has occurred as a bit of both the highway and interest rates in a sense," Mr Kelly said. "The market was really kicked along when investors came back. Those investors came back because the rental market tightened up and rental prices began climbing.
"The rental market tightened up because of a shortage of rentals which have come about because of the infrastructure changes."
Both agents agreed the market's future is bright.