by Jemma Pearson A busy period for real estate agents has many wondering, is this the beginning of better times ahead for local property?

For many in the local property industry, however, 2012 couldn’t have started any better, and while nobody is claiming it’s plain sailing from here on in, a lot of the Coast’s agents are hopeful that we’ve skimmed the bottom of the market and a turnaround is happening now. While this is certainly not translating into a rise in prices, enquiry levels have increased, dramatically.

In a media release from last week, the Housing Industry Association’s Economics Group crunched the numbers on the nation’s house prices. “Another year has passed, with portents of doom and gloom regarding residential property prices yet again proving incorrect,” it read. “The good news is that with back-to-back rate cuts in November and December 2011, there is every chance we may see a return to dwelling price growth at some stage in 2012.” So while confidence is up, house prices are not yet on the rise.

In regard to new homes the HIA JELD-WEN New Home Sales report, released earlier this month, showed an increase in sales of new homes for November. The report is based on a survey of the country’s 100 largest builders. Commenting on the report, HIA chief economist Harley Dale wasn’t surprised by the result, adding, “With falling interest rates, a competitive building market, and a greater availability of skilled trades amidst still very soft overall demand conditions, now is clearly a good time to build a new home.”

The HIA findings seem to be supported by BIS Shrapnel’s five-year report. According to the industry analyst and economic forecaster, the decline in residential construction may have bottomed out around the country. Its report states, “First-home buyer demand is showing early signs of recovery in a number of states, while dwelling deficiencies are building up in NSW, Queensland, WA and the Northern Territory.”

The HIA Economics Group ended its report on a confident note. “On balance,” the media release concluded, “the HIA Economics Group’s view is that there is now a decent prospect of a return to dwelling price growth at some stage in 2012. Barring a complete meltdown in Europe, as interest rates retreat further prospective investors are likely to increasingly favour housing over term deposits or shaky equity markets. Meanwhile, as the cost of repayments start to align more closely with rent payments, current tenants are also likely to look at making the leap into home ownership.”

On the ground level, many of the Sunshine Coast’s agents are in a buoyant mood. No one has yet uttered the word ‘recovery’ and the optimism is still cautious – agents are keen to stress to vendors that while the buyers are out, they are still looking for value and only those vendors prepared to meet the market are selling. But don’t take our word for it. Here is what some prominent agents have to say:

Geoff Ohmsen - Platinum Properties
"In the first four days back this year I sold four properties. Three of those buyers were relatively new to the market and really enjoyed their experience here over Christmas given we had exceptional weather."

Carola Gauchi-Gera - KBR Property Sales & Management
"These summer holidays have seen a welcome change to the real estate market, the level of activity has been great, we have written three contracts between Christmas and New Year and are in negotiations with buyers on another seven properties. There are definitely more confident buyers wishing to enter the once-again affordable market."

Ross Cattle - Harcourts Mooloolaba
"It was a very pleasing end to 2011 – we sold five properties in three days just before Christmas, and this year has started off on a very positive note. Our property management department has been very busy, on one day processing 13 applications from prospective tenants that all came in within a four-hour period. Overall the number of buyers attending open homes is good and the internet enquiry has also picked up. We are seeing a spin-off from the mining boom and people’s attitude this year seems more positive. I believe 2012 will see normality back in our marketplace and as confidence grows property prices may rise slightly."

Steve Perry - RE/MAX Property Sales
"We have seen buyer enquiry at least double since the interest rate drop in November, and it has continued though the December period. We then started off January with a bang. We made a $1.65 million sale on Christmas Eve and as of January 16 we’ve made nine sales. Everyone is feeling positive. I believe if this continues through March and April that is an excellent sign that we are into good times. There is good enquiry through opens and on the rental side as well."

Tamara Wrigley - First National Carolans
"Our first week back after the Christmas break made up for a slow start to December. The second the doors were open on January 3 the mayhem began. Our office in Nambour rented 10 properties in the first two days of opening and we soared from there. There have been more than 50 internet rental enquiries each day. We start to respond to them and you deal with one and five more come in. December, January, February and even March are the busiest time for rentals and the best time to get good rents on investment property. There would be at least 10 groups of people showing up to rental inspections, making it a very exciting time for investors to get top dollar. I love this time of year, as it is pumping. If you are a landlord thinking of letting this is the best time to do so."

Nigel Lucas - Mooloolaba Real Estate
"In November and December there was a sharp uptake in activity for open house inspections and sales. There was an even mix of holiday/ investor buyers and people buying for their own use. We had an increase of 58 per cent on October levels and a six per cent increase on the same period last year."

Damien Michael - Next Property Group
"The sunshine has radiated through to the real estate market. Next had unprecedented numbers through open homes in a recent weekend with a huge demand from buyers across all parts of the Sunshine Coast. We had 23 buyer groups through a 45-minute open home in Buderim. There were 17 groups through a Palmwoods home and 15 groups through a trendy beach house in Moffat. We also had 13 groups through an ultra-luxury acreage property in Tanawha. For the first time in many years investors from outside the Coast are leaving their criteria with our sales team in a bid to buy now and return in a few years."

Rod McLean - First National Maroochydore
"The activity level with buyers really picked up in early December and has been very strong ever since. Between Christmas and New Year there was the strongest amount of enquiry seen for that period for years, resulting in three contracts at that time and a further four since then, with the sales team in negotiations with a further three. 2012 has started with a vengeance and you can certainly see the spring in everyone’s step. I can already see that it is going to be a much more positive year."

Andrew Kirby - RE/MAX Property Sales
"What a great start to the New Year. The weather is beautiful, people are happy and buyers are out and about. I had five homes open for inspection on a recent weekend and nine the weekend after. I met around 118 people over one weekend, with 25 serious buyers still discussing their needs and buying range. Other buyers are not ready yet, but looking to see the value in the area and many are listing their home with me to sell. I sold two homes in just eight days just after the New Year. Confidence is back in the market."

Shane Strong - Go Gecko Caloundra
"A steady increase in buyer enquiry since the New Year culminated in a 600 per cent increase in the two days leading up to January 10 with back-to-back inspections on various properties and Go Gecko staff negotiating a couple of contracts."

Trevor & Glenys Martin - Property Today
"Wow, what a way to finish off 2011. We sold seven properties in the lead-up to Christmas (six on the waterfront), all going unconditional to Queensland buyers. The enquiry with cashed-up buyers has been the best it’s been for the past three years – buyers can feel the Sunshine Coast is finally hitting the bottom of the real estate cycle, representing excellent value once again. At present, we have four other properties under negotiation. One thing for sure is once people see the new public hospital come out of the ground and cranes scattered around Kawana this new infrastructure will finally drive our prices."

Bevan Horsnell - Belle Property Buderim
"Towards the end of the holidays we have seen the buyers come out and there has been a marked increase in interest levels at open homes compared with previous weekends. People are back into the looking mode – a property that was attracting two or three groups through an inspection on previous weekends had seven or eight groups through on the weekend just gone. I’m finding most buyers are quite excited. They do think we have seen the bottom of the market and while we are certainly not heading off the page, things are picking up."

PLEASE SIGN

It’s a busy time for conveyancing solicitors too. Here’s what Ferguson Cannon Lawyers’ Jim Carlile told MPP this week: “Recent new file openings indicate that there is some renewed positive activity in the marketplace. After the first two weeks of January we have already opened 83 per cent of what we opened for all of January 2011. In December we also experienced an increase of 39.3 per cent for new file openings over the previous December. Therefore even though it is early days at this stage, based on these figures there appears to be a positive upwards trend developing. This trend is also being supported by an increase in requests for quotes via our free online system.”