A robust residential property market is forecast for 2010 provided interest rates don’t climb too much higher, according to Ray White.
Ray White has enjoyed strong property activity this year, with more than 4,215 auctions listed over the past 12 months in NSW alone.
“These results show that the market has been coping very well with rate increases,” Ray White NSW CEO Stephen Nell said.
Anthony Kassis of Ray White agreed, telling Real Estate Business that auction sales in the Maroubra and Mascot areas have been exceptional, despite it being the lead up to Christmas, which is traditionally seen as a quiet period.
“Auction sales have done very well this year and continue to do so, with prices moving up by about 10 per cent [compared to last year],” Mr Kassis said.
“We recently sold a two bedroom residence at auction for $965,000 – about $130,000 over the reserve price, which was astounding.”
Off the plan sales have also been doing extremely well, according to Mr Kassis, who said the agency recently sold 65 units off the plan in Dulwich Hill.
“Off the plan sales are popular right now, particularly in this economic climate, because they enable buyers to save money over the next 12 months or so while having the ability to lock in an early interest rate,” he said.
But despite the currently positive outlook, Mr Kassis said if variable home loan interest rates were to hit 7.5 to 8 per cent, the market would see a downward shift.
“It’s a really good market at the moment, but that will change if banks increase their variable home loan interest rates again,” Mr Kassis said.
Mr Kassis also said the end of the first home owner grant boost may also result in an ease in market activity in 2010, but remains positive.