Greg will answer your real estate questions
Q: There has been a lot reported in the media lately about interest rates and the housing market. What does that mean for us here in Port Macquarie?
A: The outlook for housing prices in Australia, including our area, has been fairly gloomy. However, with downward movement in interest rates in recent months, industry experts have reported some positive trends in the property market.
The Westpac – Melbourne Institute Survey of Consumer Sentiment reports on consumer evaluations of their household financial situation. Consumers are also surveyed about their views on buying conditions for cars and dwellings, the wisest place for savings, and economic news recall.
The data for June showed that while overall confidence remained quite weak, the lower interest rate environment is having a positive impact on the property market. Each quarter the consumer sentiment survey includes questions about the wisest place to save.
According to RP Data, 25% of the June survey respondents felt that real estate was the wisest place, up from 18.6% of respondents in March.
During June we also saw the NSW Government hand down their State Budget, which included a first home owners grant, stamp duty exemptions and new home grants to take effect from October 1 (see www.gregtrembath.com.au/blog for details).
While these ‘goodies’ only directly benefit a portion of the market, the incentives combined with lower interest rates are likely to have a positive effect on buyer numbers, which is good for everyone.
Most industry commentators can see the housing market making a comeback in terms of an increase in transaction activity and a gradual improvement in values in some markets; however, they don’t predict a return to robust growth in home values any time soon.
So there are some positive signs for the market in Port Macquarie, tempered by the fact that the global economic uncertainty continues to have an effect on us all.
Answers are general comment, and readers should always seek their own independent professional advice.
Send your real estate questions to firstname.lastname@example.org Greg Trembath is Principal/Licensee at Greg Trembath Real Estate. Licensed Real Estate Agent – Licensed Auctioneer.
This story was published in issue 80 Greater Port Macquarie Focus