Market Outlook Australia’s property market is definitely on the rebound, however, there is general consensus that the recovery is slow and gradual. While low interest rates and reducing house prices have helped improve confidence to some degree, it has not been enough to bring about a stronger recovery. Industry data shows increases in housing finance in September and October, with early data in November suggesting this trend will continue. New mortgage lending is still low, an indication people are saving rather than spending due to generally low consumer confidence. While there have been significant gains in confidence in the latter part of 2012, job security remains top of most Australian minds and continues to hinder activity. There is total agreement among state chairs that interest rates should still be cut further, although most (71%) think this will still not be enough to boost Australia’s property market. They also indicate: } Stamp duty, along with other state property related taxes, should be abolished, } More government initiatives to support the first home buyer market would stimulate the market, and } Change in policies for new home building and approval processes are needed The majority of the network’s members expect interest rates will be cut further, which should help to stimulate activity, further improve consumer confidence, help reduce mortgage stress and ultimately, begin to drive property prices.
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First National Real Estate 2013 Property Market Outlook