Positive Signs for Australias Property Markets

Yes, there is some good news out there. It isn’t making the headlines, but it is out there nevertheless.

Here are some positive points to help you make it through your real estate day.

The vacancy rate is tight. In most capitals and major regional markets it remains under 3% and is much lower in Brisbane, Sydney, Perth, Canberra and central Queensland. Rents growth is starting to accelerate, and we know of numerous examples where more than 30 rental submissions are being received for vacant rental dwellings across Brisbane.
Sales have improved since mid-year, and those vendors who meet the market are selling – and now, often quickly. It is still a buyer’s market – with the high supply of stock for resale – ensuring that you need to realistically price and market your property well in order to make a sale. Investors are starting to take their properties off the market and are renting them out again, as they are attracting good rental yields.
Last year’s interest rate drop is having some impact – with the number of owner-occupier loans up 2% in December. Housing investment loans rose 7.5% in December, after a 2.7% rise in November. First-home buying activity is currently at a two-year high. Generic prices might be still falling, but there are signs that the housing sector is starting to turn the corner. The latest housing finance data provides a degree of encouragement. Home loans have now increased for nine consecutive months, and the investor market is doing the bulk of the heavy lifting. We have been saying for some time that it is the investors who will get the housing market back on its feet
The Melbourne Institute-Westpac confidence survey shows that late last year, price pessimists in Brisbane dominated (-10%) versus this month’s positive result of 27% (percentage of those expecting a rise minus percentage expecting a fall) – a 180-degree turn in just three months. The Good Time to Buy a Dwelling Index is up in Queensland and also in Western Australia. Queensland’s pending state and local elections will hopefully lift confidence higher.
Sourced: http://www.propertyobserver.com.au/residential/seven-positive-signs-for-australias-property-markets/2012021453387

- By Michael Matusik