THE Federal Government’s First Home Buyer Boost has done more than just stimulate the lower end of the property market, according to Townsville real estate agents.

With the boost sparking a surge in demand for properties priced up to $400,000, existing home owners have used the opportunity to sell up and upgrade into more expensive homes.

Agents have reported a staggering rise in interest in homes priced up to $600,000, with multiple offers at or above asking prices being made more regularly.

ReMax Excellence agents Lyn Griffiths and Rohan Banning said the activity was a complete turnaround from sluggish activity just months ago.

Ms Griffiths said a home in Mundingburra, which sold for $465,000 on the first day it was advertised, attracted four offers after 32 groups of people inspected the home in 30 minutes.

Ms Griffiths said with interest rates tipped to rise instead of fall further, the word ‘recovery’ had quickly replaced ‘recession’ around Townsville dinner tables.

“Over the past month there has consistently been anywhere between 10 and 30 groups attending inspections for properties priced between the high $300,000’s and $600,000,” said Ms Griffiths.

“That high volume of interest is leading to multiple offers being made at and above asking prices, which is a complete turnaround from the market’s darkest days earlier this year.

“It’s hard to pinpoint why things have turned around so quickly, but stronger employment figures in Townsville and a more optimistic global economic outlook is certainly giving people the confidence to jump into the market.

“Funnily enough, home sellers are also gaining the confidence to put their properties on the market after fearing they wouldn’t be able to sell for a good price a few months ago.”

Ms Griffiths said the real estate market didn’t get as bad as many people thought it might following the collapse of Storm Financial and initial fears that Queensland Nickel would be shut down prior to the sale of the plant to businessman Clive Palmer in July.

Mr Palmer’s acquisition saved about 950 jobs, but more importantly it sent an even greater message of confidence out to the Townsville community.

Mr Banning said the threat of an interest rise next year indicated that the economy had turned a corner.

“The local economy and jobs market appears to have stabilised and when people feel confident that their job

is safe, they are more likely to move forward with buying property,” Mr Banning said.

“The return of confidence in the real estate market has been nothing short of amazing and we believe many factors have caused it to happen.