Yamba real estate market booming, Grafton yet to start
THE real estate market in the Clarence Valley is operating at two speeds say agents.
On the coast at Yamba the market it bubbling as investors move in to snap up properties ahead of the Pacific Hwy upgrade in the region.
First National Yamba sales manager Dave Grams said the market was already moving and would gain more momentum following the recent cut to interest rates.
"There's a real buzz down here with the highway work starting later this year," he said.
Mr Grams said investors are "jumping on" properties under $400,000
"It's really taken off. You can tell it's going off by the number of multiple bids we're getting," he said.
"Inspections rates are also going through the roof. I've got a $385,000 property which five people have looked at in the past two days. It's not going to last the week."
Mr Grams said investors are driving the boom, which has resulted in higher prices and an increase in rental returns.
"With few properties and increased demand for them, prices have to go up," he said.
"And with the potential for good rental returns, the interest will stay there."
The principal at Elders Real Estate in Grafton, Dave Dart, said interest rates had been falling for a while without any noticeable effect.
"It's too soon to say what effect the latest cut will have but interest rates have been low here for a while without massively stimulating the market," he said.
The good thing for potential home owners and investors is the stagnant market has kept prices low.
"There's a lot of good buying, especially at the lower end of the market," Mr Dart said.
"Rental returns have always been good in Grafton so with low interest rates and shares not performing, there's potential for people looking for bricks and mortar investments."
Mr Dart said the local economy was on the edge of a boom with the work from the highway upgrade and bridge construction about to start.
"In other areas where the highway has gone, the bosses come to a town and buy a house because they know they'll be here for a while and it's more cost effective to do it that way," he said.
He said it was only a matter of time before the market started to pick up.
"Last week's announcement of the delivery partner for the highway and the interest rate cut has set it up," he said.