The number of new listings advertised across the market nationally has increased for the fourth successive week, suggesting that vendor confidence is improving as market conditions improve. Over the last week, 13,770 new properties were advertised for sale which sees new listings move back to around the 12 month average and represents an increase of 2,000 new properties being advertised for sale compared to the previous week. The continued lift in properties being advertised for sale would probably surprise no one following the recent 100 basis point cut in the official cash rate by the Reserve Bank of Australia and the Governments increases of the First Home Buyers Grant.

Evidence of an increase in sales volumes are still not apparent however, anecdotal evidence suggests that market activity has picked up in recent weeks as more potential purchasers visit auctions and attend open houses. This new trend has been most noticeable in the lower priced segments of the market which are most attractive to first home buyers. It is likely this segment of the market will be the first to show signs of recovery due to the fact that mortgage rates are likely to fall considerably further and the First Home Owners Grant provides some support to first time buyers. Again, this impact is counterbalanced by the uncertainty within global financial markets and predictions of significant increases in the unemployment rate. A significant increase in market activity is unlikely until consumer confidence improves markedly.

Source: RPdata