Welcome to 2010 and what will likely be the most exciting year in Australian real estate since the property boom earlier this decade.
Average property values have now recovered beyond their 2007 peaks, after which we experienced a relatively softer marketplace during the GFC throughout 2008/09. Things started firing up again in mid-2009 with record low interest rates and an improving Australian economy bringing major confidence back to the property market – and the share market as well.
We’re now heading into a year where property prices above $1 million should rise due to massive demand from upgrading families. Investors should be back, adding a major boost to the market under $1 million as first homebuyer numbers dwindle. The Federal Government’s original First Home Owners Grant of $7,000 remains in place, along with various stamp duty concessions provided by state governments, so first home buyers who missed out on the First Home Owners Boost last year should continue to feel confident about buying in 2010.
Across the country, the average time it takes to sell a house has dropped from around 50 days at this time last year to an excellent 31 days in late 2009 – the average length of a standard property campaign.
I concur with RP Data’s summation that we are currently experiencing “extremely healthy market conditions”. I expect to see a lot of activity in the property market in the first quarter of 2010 – at McGrath, we already have hundreds of auctions booked from mid-February onwards company wide.
If you’re thinking of buying or selling this year, spend some time at auctions next month to get a feel for the action ahead in your particular marketplace in 2010.
Be assured, should you need any advice or assistance with your future real estate needs, I am always at your service.