We’ve noticed a marked improvement in buyer enthusiasm following the first interest rate cut but it won’t be enough on its own to spark some serious growth. The European problems are a big dark cloud and if they’re resolved I think that will have a much greater positive impact on the actions of buyers.
The market under $1 million is strong due to first home buyer and investor activity but the prestige sector still lags. We need to see unemployment down, retail spending up, a resolution in Europe, improved bonuses and a good consistent quarter on the stock market for the prestige sector to move.
Australian buyers don’t need to see a lot of price growth to regain confidence, they just want to know that home values have stabilised and now’s the time to buy and I think there’s a good chance that will happen in the first half of 2012.
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