Property boom causes blind buy

WOULD you buy a house without looking inside?

A buyer snapped up this South Mackay home last week without inspecting it, determined not to be beaten to the deal by seven other interested parties.

It's behaviour Vision Real Estate Mackay principal Eric Rickman hasn't seen since the last property boom.

"I listed it a week ago and it sold prior to inspection," he said.

"They put a contract on it without viewing inside.

"That doesn't happen very often but... in the past boom in the mid-2000s that did happen."

Mackay property owners pocketed massive profits in the last boom, with the median house price jumping 184%, from $128,000 to $363,000, between 2001 and 2006. Median prices have remained more stable during the last five years, rising 10.2% to $400,000.

Vision Real Estate Mackay director Darren Symons says prices are on the rise again now, driven by rapidly rising rental costs, which are prompting many to buy their own homes.

"There's so many new people coming to town the prices of the houses are going up now," Mr Symons said.

"I don't think there'll be a spike (to the extent of that during the last boom) but with the present mining boom going on we're certainly going to see an increase in property prices.

"Days on the market have reduced drastically.

"The average time on the market is 10 weeks (but) you're probably seeing about half that at the moment: four or five weeks, provided it's priced realistically.

"Everything up to about $600,000 is selling well."

Mr Symons said the rental market was doing even better than in boom one, with high returns luring investors back.

"The rental market is incredible at the moment.

"It has already surpassed boom one.

"The investor market is coming back for the first time in a considerable time."

Recent interest rate cuts had also spurred many home buyers into action, Mr Rickman said.

"November and December were two of our best months," he said.

PRICE RISES

Mackay median prices

2001: $128,000

2006: $363,000

2011: $400,000

Moranbah prices

2001: $53,000

2006: $357,500

2011: $618,000

Dysart median prices

2001: $30,000

2006: $317,500

2011: $485,000

Rockhampton prices

2001: $102,000

2011: $317,250

Townsville prices

2001: $130,000

2011: $363,500

Source: http://www.dailymercury.com.au/story/2012/01/30/property-boom-causes-blind-buy-house-mackay/