Conditions are ripe for a sustained recovery in residential property prices, economic forecaster BIS Shrapnel says in its Residential Property Prospects, in its most recent report.

“Low interest rates, solid growth in rents and housing shortages evident in most markets” are the factors that will drive prices, the report says.
The Reserve Bank of Australia (RBA), meets next week, and it is widely expected the decision will be to cut interest rates by as much as .5 of a percent. Most economists are now expecting predicting interest rates to continue fall by as to at least March next year with the possibility of the cash rate falling to as low as 3% by late 2012.

Buying in the right location in this market = opportunity. With the added incentive of the $10,000 Govt building boost finishing in January and you want to enter the market now is the time to make your move says head of research at NSG Mr David Beveridge.