Media release – date RUNCORN PROPERTY MARKET RECOVERY SET TO STRENGTHEN IN 2012 Trevor Pick from First National Real Estate Runcorn says the local property market is showing some potential for 2012, with signs that a slow recovery is just around the corner if buyer confidence returns and government policies are changed. “In the last six months, the market has been falling, and as 2012 this is expected to continue until the local economy strengthens and affordability improves even more,” Mr Pick said in the First National 2012 Property Market Outlook released this week. The key challenges facing the region’s property market in 2012 will be creating buyer confidence and creating employment opportunities so that money will be put back into real estate. “Lower interest rates will also make it more affordable for people to invest in, and upgrade, property, Mr Pick. According to the Outlook, residential property prices in Runcorn are expected to trend downwards in 2012 across all sectors of houses, apartment/strata and land due to the weak economy and high building and living costs. Downward movements of between 1 and 5 per cent are expected. The rental market should se vacancy rates trend downwards in 2012, tightening by up to 1 per cent due to high rental demand. “Weekly rent prices are expected to remain flat for much of 2012, although there is potential for some increases of between 1 and 5 per cent due to the high demand placing upwards pressure on prices,” Mr Pick said. Mr Pick expects first home buyers to represent the strongest growth in activity in the Runcorn region due to improved affordability with lower interest rates and drops in home prices. “However, investor activity is expected to increase by between 1 and 5 per cent as a result of improved affordability due to lower property prices,” Mr Pick said. Interest rates are expected to remain unchanged in the first half of 2012. There has been some increase in default mortgages and this trend is expected to continue into 2012 due to higher costs of living. The economic events in Europe and America are expected to continue to impact on buyer confidence until some stability returns. -
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Issued by: First National Real Estate. For further information or to receive a copy of the 2012 Property Market Outlook, Trevor Pick, Principal from First National Real Estate Runcorn, on 07 3344 3060.