Australia gets confident about property

There has been a lot of good news in the media lately regarding the return of consumer confidence when it comes to the real estate market. CENTURY 21 shares that confidence, and it’s great to see that after months of uncertainty and a slowing economy, the latest signs are pointing towards the country’s economic recovery. This is great news for the real estate industry and property market as there’s no denying that we’ve been affected by poor economic sentiment.

  

The good news extends beyond just real estate as there has been talk that so far we’ve managed to avoid a recession, interest rates are remaining low, and the Aussie dollar is stronger than it has been. This has culminated to result in the Westpac-Melbourne Institute index of consumer confidence increasing by a near-record 12.7% in June to 100.1 points. With 100 points as a middle ground, this recent figure shows that there are just slightly more optimists than pessimists for the first time since last year.

  

The real estate industry is also showing positive signs, as I have been saying we at CENTURY 21 have been experiencing this for a while. The first home buyer market has been active for a while, and other owner occupiers and investors are beginning to re-enter the market. Currently the number of new housing loans are at a 14-month high, an increase of 0.9% since April, and loans for new construction rose by 1.3% to reach a seven year high, according to CommSec.

 

An economist with CommSec has said that the most recent round of housing finance figures is reinforcing their view that the housing sector will be the growth driver over the next year, and that’s one that is shared by many in real estate.  
Posted by Charles Tarbey on 15/06/2009 at 8:37 AM | Categories:

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