There is an old saying that when the US market sneezes Australia catches a cold and that was certainly the case with the global financial crisis where we followed the US into the abyss however with US property now recovering we can expect to enjoy a positive reflection locally according to Managing Director, Geoff Baldwin.
“For decades the Australian economy has closely mirrored that of the USA and although we navigated the recent global financial crisis better than most, we were almost immediately affected by the US downturn in 2007”, Mr Baldwin said.
“The good news is that the $17 trillion dollar US housing market is rebounding strongly with confidence returning, forced sales reducing and sales volume up significantly and new house starts at a 5 year high.
“America’s highest selling brand, RE/MAX recorded values rising across the board in the US by 5.1 percent over the past 12 months with many markets up by as much as 13 percent to 20 percent.
“This demonstrates that the historic real estate cycle is as reliable as ever and the same applies here in Australia.
“Confidence returning to the US market bodes well for our own real estate environment remaining in positive territory and activity in most states is expected to show continual improvement through winter increasing with the onset of the warmer months.
“People who are considering buying, whether they are owner occupiers or investors, should be taking action sooner rather than later”, Mr Baldwin said.