Market Expectations for 2012

The LJ Hooker business ended the year on a confident and positive note with property sales across Australia and New Zealand increasing by 20 per cent in December 2011.

After a challenging 2011 for the industry it was good to see the number of property sales lift at the end of the year.

The influence of the two consecutive rate cuts by the Reserve Bank of Australia at the end of the year directly related to consumer activity in December. The rate cuts gave prospective property buyers confidence to enter the market – many of whom had been sitting back waiting and watching the market for many months in 2011.

December is always busy for real estate agents around the country. It is a key selling period for the industry as people look to successfully complete negotiations before the end of year. This was seen through LJ Hooker Parramatta who held their Big Event auction in the week leading up to Christmas with 14 properties worth more than $5 million successfully being sold.

This activity was also reinforced by the number of home loans written by LJ Hooker Finance for the year, an increase of 14 per cent – especially in New South Wales as first home buyers locked in purchases ahead of the Government’s changes to stamp duty concessions.

2012 begins with momentum and confidence in the market. It also presents outstanding buying opportunities for Australian families and investors as we predict more investors will come back to the market as rental returns continue to strengthen.

Home owners will start the year feeling the benefits from the recent 25 basis point cut to interest rates and we see this and potential future cuts attracting buyers who wish to take advantage of currently well-priced property.

We predict Bowen, Queensland, Newcastle, New South Wales and Perth, West Australia will be the places to watch for 2012 with lots of activity around key regional towns and cities influenced by the continued mining boom.

Consumer confidence will continue to be key in 2012.

Media contact:
Simone Bergholcs
LJ Hooker Corporate
Tel: (02) 8303 7034

After a challenging 2011 for the industry it was good to see the number of property sales lift at the end of the year.

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