What Will Port Stephens Property Do in 2012?

Port Stephens Property Prices 2012

The Really Big Question On Every Ones Lips About Port Stephens Property Is…

Will Interest Rates Declining Affect The Port Stephen Property Market?

July and August in 2011 were two of the quietest months in Port Stephens Property since the 2008 Financial Crisis. On the back of that, the Government announced that they would abolish the first buyers grant effectively at the end of 2011. This kick started the sluggish Port Stephens Property market.

So Why Has The Ending Of The First Buyers Grant in 2011 Affected The Port Stephens Property Market?

The Port Stephens Property market has taken off again since the announcement that first home buyers will no longer receive the first home buyers grant if they haven’t exchanged on a property by the end of September 2012. First home buyers and investors have previously been sitting on their hands with uncertainty about the property market on the back of a shaky share market, threats interest rates would go up, and the cost of living increasing.

When first home buyers start buying because they wanted to captilise on the last opportunity for FREE money, it pushed investors to start buying. When first home buyers start buying, then the investors start buying. This causes a ripple effect up the price ranges. The Port Stephens Property Market ripple effect begins to slow when you get above the $800,000 range with a smaller amount of buyers and property prices re-adjusting in this price range to suit the buyers expectation of value.

What Will Happen To Port Stephens Property Values As Interest Rates Go Down?

It must be noted that they only reason that Interest rates are going down is that the property market is slowly softening(dropping) and by lowering Interest Rates, the property market gains more confidence. With that said Port Stephens property is cheap in comparison to Sydney, Melbourne and even Canberra prices so what is likely to happen into 2012 is the market will remain confident and while prices wont be going up, buyers will have to move quickly on properties that are priced and marketed right.How Interest Rates Affect Port Stephens Real Estate

“If rates do remain on hold, or begin to fall(the prediction is they will fall 1 percent by June 2012), we would expect to see Australia’s housing market find a base and begin to generate capital gains again. If the RBA has really come to the end of its tightening cycle – which we would find surprising given the high core inflation revealed over the last six months – 2011-12 will likely be judged one of the best buying windows seen in quite some time. The turning point will arrive when otherwise hawkish Australian consumers accept the notion that rates are not going to inexorably increase,” Mr Joye said. (Source RP data)

I believe the next 6 months represents a great opportunity for sellers if they have Port Stephens Property to sell.