There has been an increasing amount of good news about of late when it comes to the real estate industry and the economy in general. And a recent survey by the Westpac/Melbourne Institute which I've referenced in this blog before has shown that the Australian economy is strengthening.
Released last week, the survey predicted that the annual pace of contraction forecast in April to be less severe than in previous months, and it also indicated that economic activity rose by 0.7 per cent in April.
Although all these numbers and surveys can be confusing for many, this one basically shows that there has been significant improvement in the economy since February, which is when the index hit its low point in the current cycle – the lowest since 1982 in fact. What that does indicate, in layman's terms, is that if the current rate of improvement continues, we can all look forward to positive growth in the first half of 2010.
From a real estate point of view, that is of course good news. As the economy regains ground, more people are likely to begin considering buying and selling more readily. There are also whispers that more rate cuts are on the horizon which will benefit people already invested in property, and is likely to continue to act as a motivator for those considering entering the property game.