Media release – Date YARRAWONGA PROPERTY MARKET SHOWING SIGNS OF RECOVERY Danielle Kennedy from First National Real Estate O’Meara Kennedy expects the 2012 Yarrawonga property market to be quite subdued and says while there are encouraging signs, there is still some distance to go. “The current falling market in Yarrawonga is set to continue in 2012, due to reduced consumer sentiment,” Ms Kennedy said in the First National 2012 Property Market Outlook released this week. “Home buyers need to concentrate more on the ideal current market conditions and the opportunities that are there to be capitalised on,” Ms Kennedy said. “Property prices are very affordable, interest rates are low and employment is high – all the right ingredients to purchase property.” The key challenge for the 2012 property market is seen by Ms Kennedy as stimulating market activity by restoring consumer confidence which has flagged as a result of global economic events. “State government stamp duty policy changes will also impact on the Yarrawonga region’s property market, making homes even more affordable with the exemption in NSW and a reduction in Victoria,” Ms Kennedy said. According to the Outlook, residential property prices in Yarrawonga are expected to continue trending downwards, with decreases of up to 1 per cent with the market close to leveling out. “Land price decreases could be between 5 and 10 per cent, following a recent 30 per cent price drop in Silverwoods,” Ms Kennedy said. The rental market should see vacancy rates remain flat with potential movements of between 1 and 5 per cent although enquiry is slowly lifting. “Weekly rent prices are also expected to remain flat, with the potential for decreases of up to 5 per cent,” Ms Kennedy said. Ms Kennedy expects any increase in investor activity to be in the vicinity of 1 to 5 per cent as a result of low interest rates and reduced house prices yielding improved returns. “But I expect retirees to be the strongest growth segment in the Yarrawonga region as they seize the opportunity of buying into the lifestyle with improved affordability and low prices,” Ms Kennedy said. Interest rates are expected to remain unchanged, representing even more good news for investors.
There is the potential for default mortgages to increase in the Yarrawonga region due to an increase in bank appraisals. The economic events in Europe and America are impacting on the local Yarrawonga property market, reducing consumer sentiment. The introduction of the carbon tax is expected to affect the property market as well, further eroding consumer confidence. -
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Issued by: First National Real Estate. For further information or to receive a copy of the 2011 Property Outlook, Danielle Kennedy, Principal from First National Real Estate O’Meara Kennedy, on 03 5744 1331.