Gathering Momentum

Disruptions caused by natural disasters combined with a sharp increase in homes for sale at the end of 2010 has resulted in soft market conditions across capital cities. However, the March Reserve Bank decision to keep the official cash rate on hold at 4.75% has helped stabilise confidence and there are localised signs of gathering momentum in the marketplace. Auction clearance rates are gradually trending upward as excess 2010 housing stock begins to clear. While specific markets are still moderating, the prospect of growing demand and incremental price increases is emerging in key locations around Australia as autumn progresses.