There is light at the end of the real estate tunnel & we are pretty sure it is not an oncoming train. Whilst economic conditions currently remain very subdued, a lot points toward a strong recovery commencing in 2011.
Many of the important variables required to stimulate market activity are lining up;
1. Interest rates have stabilised somewhat which will give the market some confidence.
2. For the first time in over two years we are now seeing banks loosen their lending criteria and return with an appetite to lend new money.
3. House prices have settled and are either at the bottom or just passed it and will start to rise in the New Year, not quickly as in the previous upturn, but at a subdued rate that will be more in line with the current level of inflation.
4. There is a high stock level of available properties that have been “sitting” for a while and haven’t met the market price so haven’t sold. This is creating a rush to view properties that are new to the market and realistically riced and we are starting to see some properties attract multiple offers within the first week of marketing.
For those looking to buy, now is almost certainly the best possible time, and if you’re selling and buying on the same market, I suggest that you get on board fairly quickly and take advantage of the low interest rates currently on off which will undoubtedly rise early in the New Year.