Sydney residential real estate tipped for 2013 recovery
Residential real estate in western Sydney has been tipped to lead a housing market recovery in Australia this year.
Economists at several leading institutions have claimed 2013 will hold a number of positives for the sector, News Limited reports, with NSW expected to enjoy the lion's share of the benefits.
Savanth Sebastian, an economist at CommSec, claimed improving property prices will be the "big X factor" for the state.
"Credit growth has been subdued for some time, but some of the numbers we are looking at internally at CBA (Commonwealth Bank Australia) show a significant pipeline of homebuyers," he stated.
"It's been a long time coming," Mr Sebastian said, adding that house values nationwide will experience a boost of approximately five per cent.
Financial experts highlighted falling interest rates as a catalyst for this trend, with many predicting further cuts throughout this year.
The key cash rate is currently three per cent, following the Reserve Bank of Australia's decision to implement a 0.25 percentage point reduction in December.
Alan Oster, chief economist at National Australia Bank, said there was a definite sense of relief that prices had hit their lower limit and would bounce bank in 2013.