Boost in real estate

AFTER months of struggling, the promised mining boom may finally be making its way to Bundaberg with house prices on their way up, according to figures released by the Real Estate Institute of Queensland.

In the March quarter, the median house price rose to $280,000 - a 3.7% increase in the quarter.

But housing prices are still below were they were at the same time last year.

In March 2007, the median housing price in the Bundaberg region was $282,250.

Home owners around Bundaberg have long been promised the flow-on effects from the LNG boom in Gladstone would cause house prices to rise with fly-in, fly-out workers expected to move to the area.

Some predictions had also been made that retirees would move to the area to escape Gladstone's cost of living.

REIQ Bundaberg chairman Michael Dempsey said the slowly increasing house prices were nothing but good news for the area.

"It's a combination of things which is causing the bounce-back," he said.

"It's the change of government has bought more confidence, our moderate house prices are attractive to investors and the renting market is tightening up which means more people are looking to buy," he said.

Mr Dempsey said another rise could also be expected when the State Government plan to abolish stamp duty for owner/occupiers was put in place from July 1.

The real estate agent said he also expected the next quarter's fig-ures to show a rise in housing prices.

"I had open houses over the weekend and we were getting about 10 couples having a look around," he said.

Mr Dempsey said it was the not the big spenders who were making the house prices move.

"It has just gone crazy at the bottom end of the market," he said.

"They are the ones making it happen."

Source: http://www.news-mail.com.au/story/2012/05/21/boost-in-real-estate-movement-at-bottom-of-market-/