Further house price falls seen in December
The cost of property throughout Australia declined in December, latest figures from the RP Data-Rismark capital city home value index show.
Suggesting that now could be a good time to purchase an investment property, the index revealed a decline of 0.2 per cent in December compared to the previous month.
Out of all the state capitals, Sydney was the only one that escaped a price fall, leading the experts to push for further interest rate cuts.
"There is no doubt that additional interest rate relief in 2012 would afford a very welcome cushion to the housing market," commented RP Data head of research Tim Lawless.
Such a view is also held by corporate spokesman for Loan Market Paul Smith, who said that a cut in the cash rate would apply more pressure on the banks and create a better environment for mortgage customers.
This follows the release of data by the Australian Bureau of Statistics, which shows that house values declined one per cent in the quarter ending in December 2011.
Analysis of the figures by the Housing Industry Association found that the trend is similar to that seen at the end of 2008 going into 2009, when vast variations were seen across Australian cities.