Reasons for Cheer
Eurozone markets were offered a light at the end of the tunnel last week as Spain and Italy both sailed through the first bond auctions for 2012.
The resultant optimism initially buoyed the Australian stock market which then closed slightly lower as investors chose to sit tight.
British Chancellor for the Exchequer George Osborne has now predicted the Euro will survive, provided European leaders take the necessary tough decisions.
Local property markets are also showing potentially positive signs, with agents in popular tourist destinations reporting a surge in the level of buyer activity.
In Queensland, hot-spots like the Gold Coast, Sunshine Coast and the Whitsundays have enjoyed spectacular weather in stark contrast to last year’s horrific series of storms and flooding. A high level of tourist activity combined with lower prices driven by an excess of supply is reportedly translating to a higher level of serious buyer enquiry from both interstate and international investors.
Traders are now betting that the Reserve Bank (RBA) will lower the official cash rate by .75% by May, with the first cut expected on February 7th when the board next meets. While it is unclear how much of the cuts will be passed through to consumers, the likelihood of cuts is bringing a renewed level of confidence to the market.
Despite the current oversupply of stock in many areas and price segments, vendors of well presented properties who are realistic with their price expectations have a unique opportunity to take advantage of the New Year energy currently in the marketplace. An effective marketing campaign is crucial to maximise the level of buyer interest.
Ray WhiteTags: Housing Market, Loan Market, Property market outlook, Ray White