2013: A positive year for residential real estate
The outlook for Australia's residential property sector in 2013 is positive, with interest rates tipped to improve conditions further.
That's the assertion made in RP Data's Capital Markets Report, which stated confidence is returning to the real estate market - sentiment that is underpinned by low interest rates.
"The positive sentiment contemplated as a consequence of the long and deep interest rate easing cycle, initiated by the Reserve bank of Australia (RBA) in November 2011, is gradually flowing through, as evidenced by an improvement in housing market conditions and consumer sentiment," the report said.
And conditions are forecast to become even more favourable for buyers as last year's interest rates come into full effect.
"The economic factors tracked by RP Data seem to suggest that there has been a delayed response to the ongoing cuts to interest rates over the past 18 months or so," the report added.
Other factors that point towards a property recovery include positive auction results, with both Melbourne and Sydney recording above average vacancy rates over the last few weeks.
Clearance rates have hovered around the 70 per cent level in Melbourne, with the city expecting to see close to 900 dwellings go under the hammer this weekend (March 16-17).