While the current real estate market is sluggish and patchy, with some areas doing well and others with little movement, some indicators are showing the beginning of a recovery for 2012. There are positive and negative factors still in play, but overall, the signs are optimistic.http://www.ownitconveyancing.com

1. Signs of Life in the Current Real Estate Market
Despite all the rhetoric, analysis, statistics and predictions from the property market experts, the
performance of the current real estate market is actually based on the old-fashioned economic
principle of supply and demand. This principle is the driver behind all markets, but property
seems to be one commodity that everyone has an opinion about. However, once all the
extraneous detail is stripped away, property prices are affected by two elements. If there is more
property on the market for sale than there are interested buyers, prices will fall. If there is a lack
of availability of property, but there are many cashed-up people wanting to buy, prices will rise.
It’s as simple as that.
Of course there are many factors that make it more complicated than that. For example, there are
markets within markets, such as a particular suburb with extremely desirable attributes that cause
a low turnover of properties, but there are buyers waiting to acquire property in that area and are
prepared to pay a premium. These exclusive areas are a spike in the market, but are good
business for solicitors providing conveyancing Queensland services.
Current data suggests that while there is an over-supply of property for sale across Australia,
there are a couple of areas where the market is defying these figures. Perth, for example, has
supply that is lower than a year ago and Canberra also has low levels of supply, so the current
real estate market has some regional volatility, although generally it is still sluggish in most
areas.
However, much of the information used to compile these figures is three months old, and experts
within the property industry are seeing the beginnings of an improvement. Looking at the other
factors that influence the property market, it is not hard to see why this optimism is gaining
ground. The labour market, while still having issues in a couple of industries, is generally sound,
with job vacancies increasing overall. Interest rates are on hold and there are no indications that
the economy requires an adjustment by raising them. This should generate some confidence in
both lenders and borrowers.
The building sector in Queensland is fairly quiet except for construction projects in the Central
Queensland resource basin, so this also reduces the number of properties coming onto the
market, and historically, activity slows just before an election with decisions postponed until the
result is known. This all points to a recovery in the current real estate market in 2012 as activity
after the election increases. This will be good news for companies offering Conveyancing QLD
services that are gearing up for a market recovery.
The reluctance on the part of would-be property buyers to take on high levels of debt is a GFC-
caused phenomenon that continues to constrict demand. People who find themselves with some
extra cash are using it to pay down existing debt, and it is hoped that this will not greatly affect
the 2012 property market.
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