The May edition of the Midwood Queensland Investment Report has suggested that Queensland house prices will hit bottom by the end of this year and return to a peak at the end of 2011.  Back in November 2008, the Midwood report predicted a 20% fall for the Queensland housing market. With the Gold Coast already falling 16% since the peak in December 2007 and Brisbane falling 10%, it looks like the bottom is near.

Bill Morris, author of the Midwood report suggests that the Gold Coast and Brisbane markets will lead the sector to a recovery followed closly by Townsville and Cairns.

It sounds like Mr Morris is banking on interest rates staying low and more developers pulling out of new developments as financing becomes more difficult. Unit purchases in the Gold Coast in the month of May have been encouraging with 79 sales in the month. It is the best figure over the last 9 months.