First National Real Estate’s agents are working hard, all over Australia, dealing with renewed enthusiasm for property this spring.
Since the most recent Reserve Bank cut to official interest rates, there has been a sharp rise in consumer confidence. In fact, the number of Australians that think now is a good time to buy a home has jumped 10 per cent since March. First home buyers are keen to get a foothold as well; their level of market participation has jumped from a low 15% in 2010 to a steady 21% throughout 2012.
Given overall market conditions, it is no surprise that interest in property is once again lifting. Affordability of housing is currently at its best level across most capital cities since the first half of the last decade. Only in 2009, for a brief period, was affordability greater, due to aggressive cuts in interest rates.
Australians are quick to sense opportunity and with general commentary supportive of the possibility that the market bottomed in May, it seems recovery is underway.
A recent report by BIS Shrapnel confidently predicts that Perth house prices should grow 20.4 per cent over the next three years, that Brisbane should experience strong growth, and, that Sydney’s modest upward trend throughout 2012 should strengthen.
Yet, talk of a bubble has once again arisen in the media following a blog comment by the relatively unknown US commentator, Jordon Wirsz. In the space of a couple of lines, Wirsz said he thought there were significant signs that the Australian market is where the US market was in 2008. How anybody could draw that conclusion is beyond explanation.
Australian dwellings construction is 21% below the 10-year average, according to RP Data. This is almost the complete opposite of what was occurring in the US property market in the lead up to the GFC. Our market is chronically undersupplied whereas the US market was chronically oversupplied. Secondly, Australia did not and does not have a sub-prime mortgage issue and our banking system is much more tightly regulated. This is what also helped our market avoid the correction that was inevitable in the US in 2008.
All over Australia there are well priced properties ripe for the picking. Talk to a First National agent and we’ll help you find the perfect place for you.
Categories: Market Updates