In regards to our local property market we are finding sales activity is most active in the $200,000 to $600,000 price range. Recent sales results are very pleasing and we need more listings in this price range to meet buyer demand.
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 buyer confidence which in turn affects the number of enquiries and sales activity.
The recent decisions by the Reserve Bank to leave interest rates on hold was based on how the economy is currently performing and that more time is needed to determine the full effect of the rate cuts back in May and June.
However, the majority of banks and lenders have factored in further rate cuts to their fixed interest products with the market leader offering 5.59% for a 3 year fixed loan and variable rates around 6.8%.
As spring is traditionally a more active time for home buying we expect the market to gain momentum in the months ahead. 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 positive note is that more Investors are returning to the property market with improved rental returns and lower property prices. Investors are taking control of their superannuation by setting up their self managed super fund and buying property as part of their investment and retirement strategy.