Low interest rates, improved consumer sentiment and a changing government all point to signs of business improvement, according to sentiments from one of the nation’s biggest real estate networks.
Almost 80 per cent of First National Real Estate members are confident their business will grow in the second half of the year, the group’s 2013 Property Market Outlook Mid Year Update has shown.
“Our members are expecting the second half of the year to strengthen even further, with the revival experienced in the first half continuing,” Ray Ellis, CEO of First National Real Estate said.
“Although pockets of our membership anticipate soft trading conditions for the next few months, a clear majority is optimistic that the federal election will bring a change of government as well as a positive change in their property markets.”
As the economy also continues to improve, interest rates are expected to remain low for some time, with 51 per cent of members expecting them to reduce even further.
The report highlights the impact of ongoing low interest rates on fixed rate mortgages, which are expected to become more popular with homeowners over the coming six months, according to 86 per cent of First National members, with some even saying homebuyers may hold off for longer, with the expectation that rates may lower further still.
According to the research, the members anticipated growth is expected to result in 37 per cent of First National members employing additional staff members. However, not one member said they would decrease their marketing spend in the coming six months, with 40 per cent indicating they anticipated to increase their spending.
The Outlook, released this week, is based on a survey of the networks 400-plus members and draws on their experience at a grass roots level, providing insight to what member agents anticipate the market will do in their area for the remainder of 2013.