2011: A Positive Market Outlook
2011 is shaping up as a positive year for the property market.
According to this year's Australian Property Outlook Report by First National Real Estate, even though growth rates won't be as spectacular as they have been in previous years, property is still offering substantial returns and will lure investors back in large numbers.
The report states that throughout 2011 the property market will continue to be supported by strong economic fundamentals such as strong population growth, low levels of unemployment and buoyant consumer and business confidence.
"Some markets may still be flat, but growth will occur, although at more moderate rates than in 2009 and 2010."
"In general, the market is anticipated to gather strength in metropolitan markets in the first half of the year, with improved confidence spilling over to regional markets in the second half."
A First National poll of its 450 agents showed 63 percent expect an increase in investor activity throughout the year as a result of improved returns and increased confidence.
Contributing to the positive outlook are the predictions by many economists of interest rate stability during the first half of 2011. It is expected that the RBA will take a cautious approach as it examines the impact of the floods on the economy as Australia struggles to get its fresh fruit and vegetable industry back on track.