The two interest rate cuts recently seem to be breathing new life into Australian land. Demand has begun to increase, which is starting to flow through to a lot of indicators. Search action has seen a bulge, especially in Melbourne and Sydney, our hardest-hit markets, and clearance rates in premium suburbs are returning to elevated levels. We’re yet to find any real uplift in the number of people listing properties for sale and pricing information is to reflect a change in conditions, but, likely, the bottom is quite near.

While a lot of this sounds like circumstances are once more moving into positive territory, there are some very dark clouds looming on the horizon. Although buyers love an interest rate, the Australian market is not looking particularly healthy. While many financial indicators have been bad for a while now, the bright spark has ever been low unemployment. With this creeping up along with the Reserve Bank pushes through two interest drops very fast, the positive impact of cheaper finance might be insufficient to offset the fact that people have started to lose their jobs.

The latest property recession was self-imposed by restricting fund, but it was characterized by very little distress. If more people lose their jobs, then things could get terrible, and it’ll be far more difficult to turn things around.

The ScoMo bounce and two interest rate cuts are all breathing new life into Australian land. Demand has begun to increase, which is starting to flow through to a lot of indicators. Search action has seen a bulge, especially in Melbourne and Sydney, our hardest-hit markets, and clearance rates in premium suburbs are returning to elevated levels. We’re yet to find any real uplift in the number of people listing properties for sale and pricing information is to reflect a change in conditions, but, likely, the bottom is quite near.

While a lot of this sounds like circumstances are once more moving into positive territory, there are some very dark clouds looming on the horizon. Although buyers love an interest rate, the Australian market is not looking particularly healthy. While many financial indicators have been bad for a while now, the bright spark has ever been low unemployment. With this creeping up along with the Reserve Bank pushes through two interest drops very fast, the positive impact of cheaper finance might be insufficient to offset the fact that people have started to lose their jobs.

The latest property recession was self-imposed by restricting fund, but it was characterized by very little distress. If more people lose their jobs, then things could get terrible, and it’ll be far more difficult to turn things around.