July - August
It is fair to say that the market has no particular trend at the moment and any fluctuations in market conditions are usually in response to interest rate movements and media reporting about financial markets and the state of our economy.
In regards to our local property market we are finding sales activity is surprisingly good but this is limited to certain price ranges. The market is most active in the $200,000 to $600,000 price range with a noticeable drop in the number of sales in the higher priced segment of the market.
The strength of the market is based on a number of factors and some of the most important are interest rate movements and current economic news. Both of these factors have a direct impact on the level of buyer confidence which in turn affects the number of enquiries and sales transactions.
The recent decisions by the Reserve Bank to drop interest rates by 50 basis points and then a further 25 basis points was a direct attempt to instil more confidence in the economy. Whilst this is encouraging news it has only had a moderate effect on the property market which is largely due to the banks not passing on the full rate reduction.
Nevertheless, buyer enquiry is still active and sales volume is strong in the lower and mid range sections of the market. It is also pleasing to report there has been an improvement in recent months in the number of enquiries for properties in the $1m plus range.
Another encouraging sign is the return of Investors to the property market. Improved rental returns and lower property prices are attracting Investors back to property as their preferred investment and with self managed super funds becoming more popular plus predictions of further interest rate reductions we expect this trend will gain more momentum in the months ahead.
Ray Noonan, Director and Licensee, Raine & Horne Nelson Bay