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A strong finish to 2009 and a positive outlook for 2010

Monday, October 19, 2009

As we near the end of 2009, and a dramatic season in the property market, it’s important to look at what’s coming ahead. Two events that will change the real estate landscape are the lowering of the First Home Owner Boost and the Reserve Bank of Australia’s interest rate rise of 0.25% announced on 6 October – it’s now 3.25% from an historic low of 3%.

The change for first home buyers will have some impact on the market as they have been instrumental in driving activity for properties under $500,000, improving conditions for sellers. Recently, about 30% of our business has come from first home buyers alone, although we have already started to see that slowing. The interest rate rise is one indicator of an anticipated strong economic recovery.

Despite a slower start to the year, our listings have increased by about 30% over the last quarter and our days on market continue to fall – giving buyers and sellers faster results. Spring tends to bring out the best with sellers often waiting for warmer weather and buyers out in force.

From a broader perspective, Queensland’s population growth of 2.6% – the second highest to Western Australia – continues to exceed the national average (2.1%)*. We know that housing demand continues to exceed supply so this, combined with our continued population growth figures, positions the property market well for a good year in 2010.

*Source: Australian Bureau of Statistics, 2009

- Judith Cush