Market Outlook Direction of market – last six months of 2012 National
NSW
VIC
QLD
SA
TAS
WA
Rise
11%
31%
15%
11%
–
–
14%
Steady
65%
52%
62%
63%
100%
25%
86%
Fall
24%
17%
23%
26%
–
75%
–
Direction of market – first six months 2013 National
NSW
VIC
QLD
SA
TAS
WA
Rise
25%
38%
38%
33%
–
–
43%
Steady
66%
55%
62%
67%
100%
50%
57%
9%
7%
–
–
–
50%
–
Fall
The main reasons cited for the gradually improving market are improved affordability, increasing demand, stronger competition and slightly strengthened consumer confidence. However, any strengthening in buyer confidence is precarious at best. Consumer confidence has remained stubbornly low, even with the improved conditions of low interest rates. While recent industry figures show an improvement, this may be undermined by ongoing uncertainty focussed on a mining slow down and high Australian dollar. An upswing in residential building would go some way to offset any slowdown in the mining sector. Other indications the market is showing a slight resurgence include: } Auction clearance rates are trending above 50%, peaking at 60% during the peak spring selling period, up from the first six months of the year when they were running level at 50%. } Vendor discounting levels are slowly reducing, sitting at 13.4% of all sales nationally in the September quarter. } The average days a property takes to sell (days on market) continues to fall, according to 37% of members, while just over half say it is holding steady at the moment.
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First National Real Estate 2013 Property Market Outlook