“A high tide lifts all boats’ this is a regular expression used in business and investments.
It is used to describe the lifting of a market, client experience or similar.
From my position at auctions I’m seeing the real estate market being increasing fuelled from the bottom up. Hopefully the tide is rising.
When you look at what can see prices rise it could be some big sales happen in a suburb and show confidence to the neighbourhood that the market is moving.
This could spur the rest of the market to jump to action. But that is not the case currently, it is the bottom of the market that is seeing all the action and hopefully that will slowly lift the market.
I say slowly because there is many examples still where the gap between affordable and upmarket is getting closer and closer.
There have been a number of cases where the unrenovated property is selling for more than the finished one.
This is happening because the lower end of each suburban market has a large pool of buyers. As you look up the price list the pool of buyers gets smaller. For sometime, in the Brisbane market, we have seen a number of different speeds.
Then dig a little deeper again and see in many cases the competition is so fierce in the lower ranges that it would be cheaper to buy the more expensive property than the cheaper one and make the improvements.
I personally expected that this spring would have seen that gap widen again, but from what I saw it didn’t. The value is still in the mid to upper range of the market.
I’m confident that 2017 will see the prestige and mid range market grow, but the fuel for that growth is definitely coming from the bottom up.
As we head toward Christmas Queenslanders have a history of moving into the new year at a different speed to the one they move into the following year.
Sometimes we pick up pace, other years we’ve gone to ground. I’ll keep a keen eye on results. My first taste will be calling over 100 auctions at the Gold Coast Turf club on the January 29 for Ray White Surfers Paradise.
All coastal investors will be watching these sales.
I expect this to be a record filled day, but only time will tell.
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