Preparing for what the 2012 residential property market has to offer

Welcome to 2012! I hope everyone had a relaxing and enjoyable Christmas and New Year period.  Even for those who didn’t manage to take some extended time off, I hope you were able to celebrate with family and friends. 

2012 is now officially underway and the team at CENTURY 21 Australia are gearing up for what is sure to be an exciting year for the Australian residential property market.  I know that for many people the start of the year sees decisions made about whether to purchase or sell a property; for those with real estate plans for the year - I hope 2012 allows you to achieve your property ownership goals. 

So – what does 2012 have in store for the property market? Firstly, I think it is fair to say that 2011 concluded with a bang as the Reserve Bank of Australia moved to reduce interest rates in both November and December, giving many buyers a bit more comfort surrounding the prospect of buying a property. 

Will rates continue to come down? Many pundits certainly seem to think this will be the case, particularly if the situation in Europe is not resolved definitively.  While movement cannot be guaranteed and conditions can change, I would continue to watch this space, particularly as the Reserve Bank meets in February to review the official cash rate. 
 
Even if rates do not come down again, the two consecutive cuts in 2011 seem to have opened the door for many buyers, particularly those first timers in the property market.  However, while there continue to be many quality purchase opportunities available across the country, properties typically targeted by this market segment have performed well in recent months, particularly those in the $400,000 to $800,000 range.  In addition, CENTURY 21 has seen negative growth in the number of properties being listed of late – which could mean that we see a heightening of competition levels in 2012. 
   
As such, participants in this part of the market may do well to look to act decisively and have the appropriate finance in place so as to be ready to take advantage of purchase opportunities when they arise. 

I suspect that along with first home buyers, investors will also be taking advantage of reduced interest rates in at least the first half of 2012, with many engaging in portfolio building property acquisitions.  With a tight rental market across the country and rental rates rising, now could be a prime time to purchase your planned investment property.

All in all, 2012 is looking to be quite a busy period for the Australian housing market, and my team at CENTURY 21 Australia and I look forward to assisting many Australians in achieving their property ownership goals.  Please feel free to stop by any of the CENTURY 21 offices situated around the country to talk to a property expert about your purchase plans for 2012.

Posted by Charles Tarbey on 12/01/2012 at 11:55 AM | Categories:

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