Evans Head Outlook The Evans Head property market is expected to steady for the remainder of 2011, on the back of a falling market over the first half of the year. Housing affordability, the threat of interest rates increasing, reducing consumer confidence and tight lending criteria from major banks will help to moderate the market in the coming six months. Property Prices In the main, property prices across all segments (house, apartment/strata and land) are expected to remain flat, with any movements kept to a maximum of up to 1 per cent. House and apartment/strata property prices are expected to trend downwards, while land prices will stay about the same.
Rental Market The rental market is also expected to remain fairly steady, with weekly rent prices moving by between 1 and 5 per cent.
Growth Investor activity is expected to increase by between 5 and 10 per cent, driven by low interest rates, and increasing weekly returns as a result of SE Queensland investors returning to the market after dealing with the floods of earlier this year. Investors are expected to represent the strongest growth in activity due to increased better rental yields and easing of bank lending criteria.
Changing Market Conditions Interest rates are expected to increase before the end of 2011, but only marginally and more as a reaction to inflationary pressures. The Government’s move to introduce a carbon tax is not supported by First National members, primarily as a result of concerns about the impact on confidence, the economy, saleability of existing housing stock, and values.
First National Real Estate 2011 Property Market Outlook 13