Belief back in real estate after median prices rise

AN IMPROVEMENT in median prices has been seen across much of NSW and is a clear indication that confidence is returning to the property market.

REINSW CEO Tim McKibbin predicts a stronger year ahead for Coffs Harbour real estate. Photo: Contributed

AN IMPROVEMENT in median prices has been seen across much of NSW and is a clear indication that confidence is returning to the property market.

The latest edition of REINSW Property Profile report shows the median house price for the Coffs Harbour Local Government Area was $385,000 in December 2012, an increase of 2.7% on the median price recorded 12 months before and a 3.7% increase on the September 2012 quarter.

The median unit price was also up.

At $264,500, it was 1.1% above the median unit price recorded in December 2011.

The results indicate an improvement, and with confidence returning and stimulus in the form of interest rate reductions, I believe the green shoots of improvement are evident and a platform for a far brighter future in 2013 has been constructed.

In recent years, Australia has been influenced by overseas markets, which have not been performing well.

The reality is that many of those markets have little impact on the Australian economy at all.

During the past six months, Australians have realised our economy and our trading partners are reasonably robust.

The confidence that has come from that realisation has begun to surface and is evident through an improvement in the share market.

Property prices are now returning to more traditional levels and we will start to see sellers and buyers coming into the market more strongly over the next 12 months.

We should also see transaction levels increase, particularly in the more affordable areas of the market.

Tim McKibbin is the chief executive officer of the Real Estate Institute of New South Wales.