How's the market looking?

We are definitely feeling more optimistic than a few months ago and the level of enquiry from investors and owner occupiers is increasing. We also recently completed 2 significant apartment sales at 223 North Terrace for $720,000 and in The Conservatory at Hindmarsh Square for $725,000.

The Australian Financial Review has written about a recent report which says that the value of home loans increased by nearly 33% from August 2008 with first home buyers responsible for 28% of mortgages issued in May 2009. Also, according to the National Bank's latest quarterly report, business confidence has jumped substantially in the 3 months to June 2008. When you factor in the Reserve Bank of Australia's interest rate cut from 7.25% in August 2008 to 3% in April of this year, as well as the impact of the first home owners boost of up to $21,000, sales activity just had to get better.

So all the ingredients for an increase in residential sales activity are present - low interest rates, government grants, and increasing business and consumer confidence.

If only the Crows and Power could win every week our local market would be back in boom mode by late spring!