Bumper Quarter Means Opportunities Are Going, Going - Gone

First National Real Estate agents across Australia are posting bumper months for the first quarter of 2009, which may mean the property market is turning for the better, sooner than anyone could have predicted.

As forecast in the Network’s recently released 2009 Property Outlook, Sydney is leading the recovery, booking a 93 per cent auction clearance rate for the last weekend of February, continuing an upward trend for the Network which began at the beginning of February.

“By the end of the first week of February, all capital cities had seen an increase in auction volumes, with Sydney recording the strongest buying activity,” Paul Taylor, from Taylor’s First National said.

“By mid March some offices were booking 100 per cent auction clearance rates, achieving more than expected crowds at auctions and reporting record months for January and February that we have not seen since the housing boom in 2003.

“Buyers were also active in Canberra with auction clearance rates rising to 63.6 per cent from 12.5 per cent in late January.

“Brisbane rose to 32.4 per cent from 25 per cent, with volumes doubling to 87 at the same time.

“At the beginning of March, Melbourne posted a clearance rate of 77 per cent with 337 properties selling under the hammer.

“Brisbane had a clearance rate of 53 per cent with 29 properties, selling, while Adelaide recorded an 86 per cent clearance rate.”

Movement in the market has not just been at the lower end price points.  The middle market, properties priced above the $400,000 mark, also appears to be moving, although modestly at the moment.

“Restricted supply is continuing to put pressure on house prices and this shortfall in housing supply is only expected to worsen in the near future,” Paul said.

“Today, Australia builds the same number of new dwellings as it did 40 years ago, despite an annual increase in population of about 330,000, or nearly double the number in the late 1960’s.

“More than 180,000 dwellings should be built each year rather than the 150,000 or less of recent years.  State governments are being forced to create more development land and alternative opportunities in the face of this continuing shortage.”

“The real estate industry is one of the few sectors of the economy experiencing growth and spending activity, and it could well be a major contributor in leading Australia out of its recession” Paul said.