Ready-to-buy home hunters hit record high amid FOMO

first_imgHome buying intentions have reached a record high, according to CBA. Picture: iStock.THE number of people wanting to buy a home has hit a record high, with hundreds of potential buyers flooding through the doors of the first Brisbane open homes of 2020.Data from the nation’s biggest bank reveals early signs of a positive ‘wealth effect’ in the housing market and suggests the residential construction downturn should reach a bottom mid-year. RELATED: Brisbane auction market fires up Real estate agents are reporting huge numbers through open homes so far in 2020.Commonwealth Bank chief economist Michael Blythe said the lift in home buying intentions suggested the pick-up in dwelling prices in the second half of 2019 would continue into the first half of this year.“Past cycles show that leading indicators like building approvals turn about three months after home buying intentions start to lift,” Mr Blythe said. “A bottoming in the construction cycle would remove a major growth drag on the economy, and also helps retailing.” Commonwealth Bank Australia chief economist Michael Blythe. Photo: Hollie Adams.Home values in Brisbane have been slowly increasing since May, following the re-election of the Coalition government, interest rate cuts and the loosening of lending criteria by APRA.They rose 0.7 per cent in December, on the back of a 0.8 per cent increase in November, according to CoreLogic.Home building in the Queensland capital is also turning a corner, up 3 per cent in the September quarter — the highest growth in the country, according to the Bureau of Statistics. Large crowds have been attending auctions and the numbers of registered bidders are increasing. Picture: Andrew Henshaw.Selling agent Joanna Giannotis of Place Bulimba said she was seeing a significant change in buyer mentality.The current sales campaign of a five-bedroom house at 10 Weal Ave, Tarragindi, attracted more than 80 viewings in the first week.“They are definitely more in ‘buy mode’,” Ms Giannotis said.“I think it’s confidence. Confidence that the market is going in the right direction and they need to get into the market now.” MORE: Home sold in days as buyers return to market More from newsParks and wildlife the new lust-haves post coronavirus10 hours agoNoosa’s best beachfront penthouse is about to hit the market10 hours ago This house at 50 Park St, Kelvin Grove, had huge numbers of people through its doors at its first open home.Another four-bedroom house at 50 Park St, Kelvin Grove, saw 90 viewings in the first two days and 10 offers at the first open home. At the weekend, a two-bedroom apartment in the Elystan Court building in New Farm sold at auction for $925,000 after 25 bids from six bidders and a campaign that attracted 80 viewings. The ground floor unit in this complex at 38 Elystan Rd, New Farm, attracted huge interest.Marketing agent Tom Lyne of Ray White New Farm said two of his recent auctions also attracted six registered bidders, which was well above the Brisbane average.Mr Lyne said he had also noticed buyers were more willing to engage at auctions.“Buyers are putting their hand up a lot earlier (at auctions) and we’re seeing massive numbers at inspections,” Mr Lyne said. “Given interest rates are staying at the level they’re at … and what’s happening in Brisbane as a whole, people are more confident and don’t want to miss out.”last_img read more

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