2011 - The year that was. Market update from the Principal
Here we find ourselves at the end of another year, and wondering where it went.
We have seen a year of highs and lows in 2011. We saw the horrific QLD floods take the lives and homes of so many, we saw the global financial crisis take another round, with many casualties, we have seen the $AUS hover either above or slightly below the $US for majority of the year. We have also seen the Tour De France taken out by Cadel Evans - the first Aussie to have done so and we have seen the Gold Coast awarded the 2018 Commonwealth games.
It has been a very volatile Real Estate market over the year, however, we have also seen stable interest rates and watched them begin to fall in the later part of the year, with the current rate at 4.5% and the reserve bank indicating we are not likely to see rate rises in the near future.
I have been in Real Estate for over 3 decades and have seen it happen before, this is where it’s all in the timing. I have seen interest rates climb to over 20%. This has been a trying 12 months for vendors and businesses everywhere; hopefully we are starting to turn the corner, as there has been a noted increase in buyer enquiry.
Where does this leave anyone considering buying or selling a home in Australia at the moment?
The housing market is extremely sensitive to changes in interest rates and consumer confidence. If rates remain unchanged or actually do drop, the number of buyers entering the market is likely to increase.
In areas where prices have been dropping, more buyers coming into the market would likely cause prices to pause and begin to rise again. This is the situation that would make today one of the best buying windows seen in quite some time. The long term prospects for property are good. A recent survey of 21 leading market economists by Risemark shows that the average expectation is for average house price gains of 4.41% per annum over the coming decade in Australia. In absolute terms, this suggests housing prices will likely be 55% higher in 10 years’ time, on average.
On the home front, we have seen a good increase in short stays in our holiday accommodation, an increase in the Silversands Caravan Park attendants and also the numbers at Camp Koinonia, being very popular with schools and groups, with some 1200 people. There are also the Evans Head Bowling Club cabins currently under construction. With all of this in place, tourism is becoming a major injection of funds into Evans Head and surrounding areas.
Other contributing factors will be the long awaited nursing home along with the air park development, which will be a major boost for the town. It is also good to see Spar opening in Oak Street again, creating competition and also bringing more foot traffic back into Oak Street.
We wish you all a very Merry Christmas and look forward to working with you into a more prosperous 2012.
-Brian O’Farrell
Principal / Sales Consultant