Posted on Tuesday, January 18th, 2011 in by Matt Garmony
Economists are reporting the Australian economy is slowing with a narrowing trade surplus and a high Australian Dollar, despite the rising job ads for the eighth consecutive month. With the recent flood crisis in Queensland and eastern Australia, Gross Domestic Product (GDP) is predicted to fall in the early part of 2011. As a consequence, we are of the opinion the Perth property market will continue the subdued market conditions into the early part of 2011, with local agents reporting less first home buyer’s activity, even with a slight increase in the number of new home loans in the fourth quarter of 2010. We anticipate further RBA interest rate rises in the mid to later part of 2011 as the economy begins to rebound following the flood crisis cleanup and rebuilding in the east, creating further headwinds for the Perth property market.