Prior to the floods, the overwhelming reports of analysts was for more of the same in 2011, a buyers market, plenty of stock for sale, no price growth, more a leakage downwards.
An ANZ report this month is the latest in a long line to confirm same (articles available via download from my website)
The coast was fortunate to escape the physical damage suffered elsewhere, the real damage being economic, such as devastating the Christmas tourist season.
Matusik is of the belief that ultimately we can look forward to some positive results with an economic boom for years to come, 2011 being a year of two halves.
He sees tourism bouncing right back, once mines are pumped dry we see a continuation of strong coal prices, moisture in the ground assists the next cycle of crops, and the infra-structure spending during the recovery creates strong stimulus.
The coast itself has solid infra-structure capital commitments in place, such as the $1.6b airport upgrade. The next 6 months will be tough, but economically will be much better as we head into spring.
ANZ Report
Home prices are expected to remain flat this year amid signs the slowdown in price gains could become entrenched, says the ANZ Bank.
It estimates house prices will plateau this year, as contending forces of rising interest rates and a strong demand for employees work themselves out in the market.
"Further price weakness is expected over 2011 as the prospect of additional rate rises weigh on both affordability and investor sentiment," said an ANZ senior real estate economist, Ange Montalti.
Thursday, February 10, 2011
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