Confidence needed to drive property recovery
A lack of consumer sentiment will be one of the biggest obstacles facing the residential property market in 2013, one expert forecasts.
Real Estate Institute of New South Wales chief executive officer Tim McKibbin made the assertion as part of his predictions for the real estate sector this year.
Mr McKibbin said while conditions are set to improve over the next 12 months, there are still a number of challenges that may impede a recovery.
"The greatest challenge we face in 2013 is installing that much-needed confidence in the market. I monitor the various markets closely and while I believe at a pricing level we will not see significant corrections in 2013, I am concerned by the reduced level of transactional activity," he explained.
The expert went on to add that the "current overly-cautious market" is likely to disappear over the coming months - a trend that will drive growth in the sector.
"When the market realises that it has reacted in an overly-cautiously manner, and we see continued improved economic performance in the United States, I believe we will see slow but solid improvement in our market’s confidence," he added.
Mr McKibbin said the affordable end of the market would continue to perform positively, with demand outweighing supply in many areas.