Selling a strain after floods
FIRST homebuyers who entered the market borrowing close to 100% will be hardest hit by Queensland's flooding, according to a CQUniversity lecturer.
Property lecturer and register valuer Ian Clarkson said while the Queensland property market would eventually bounce back, first homebuyers were being forced to absorb the costs and stay where they were or face the fate of bigger losses from declining property values.
Real Estate Institute of Queensland Bundaberg zone chairman Michael Dempsey said first homeowners who had bought and needed to get out would probably lose out.
“It is part of a general slowdown,” Mr Dempsey said.
“There are people who bought two years ago at the peak and are finding that they are only getting out what they paid, or maybe a little more.”
Mr Dempsey said if people could, they should hold off on selling now.
“If they can hold off for the next 12 months and see if they can work through it, that would be the best advice,” he said.
Mr Clarkson said lower demand for homes in flood areas forced prices to fall to meet the market.
Other factors that played a role in falling values included the effects of property damage, lack of affordable insurance and a tighter credit market in which banks were less keen on risky properties.