how's the market looking?
february 2010 market update
17th february 2010
with a record year for mcconnell bourn in 2009, achieving a total sales value over $115,000,000 worth of property, excitingly it appears that our local market is setting up for another solid year due to the flurry of activity we have experienced so far.
the buoyant market at the end of 2009 was mainly due to the first home buyers grant and low interest rates allowing people to make the transition from apartments and townhouses into entry level homes and the opportunity to upgrade.
this generated increased interest in properties in the low $1 million range. additionally, many of our clients took advantage of the low interest rates to upgrade, creating a flow-on effect. consequently there was substantial buyer inquiry at the mid-high $1 million level as well as properties in the early to mid $2 million range.
so what does 2010 hold for home prices? with the prospect of an interest rate rise, the end of the first home owners grant and the potential to see higher levels of stock available, experts are indicating property values will see a modest single digit increase.
bis shrapnel senior project manager of residential property, angie zigomanis, predicts a steady growth of around 5 to 6 percent in residential property this year.
with regards to the rental market, australian property monitors economist matthew bell reports that the average annual rent increase for 2007 and 2008 was 12 percent, followed by a mere 2 percent during 2009. however, an improvement in 2010 is expected due to the probability of rising interest rates and land tax increases in 2010. additionally, australian property monitors predicts a 4 percent increase in rental values this year, with the median house for rent in sydney likely to approach $500 per week.
with our record achievement in 2009 and a promising forecast, we look forward to achieving great results and offering outstanding service to all our clients in 2010. we wish you a happy and successful new year!