The latest drop in interest rates appears to be finally stimulating activity in the market. Attendance to open homes has increased, and we are handling a much higher number of offers. The gap between seller and buyer expectations has reduced and sales are being achieved in a shorter period of time.

The 2008 decimation of share market values will bring a lot of investors back to property. There is a very good reason why they call it "REAL" estate. While there has been some reduction of property values, they have held up well compared to stock market losses of between 40% and 100%.

Rental yields have increased as property values settled and rents increased due to a chronic shortage Australia wide. The gap between the interest payable to the bank and the rental return has narrowed and in some cases closed, putting rental investment properties back on the agenda by many who have been hoarding cash over the past year or so. Cash in the bank is quickly losing its appeal as interest returns look set to almost vanish. All things point to a recovery in real estate.

There are opportunities at all ends of the market for those who are cashed up and who do their research and get good advice. Amazingly, there are still units available in the middle of the city between $300,000 and $400,000. In such a desirable location these are excellent buying, giving those who missed out in the past one more chance to get in on the action.

The exceptional real estate here and unique lifestyle Cairns offers will without doubt underpin a prosperous future for property owners.