Residential property prices tipped to stabilise over 2012
A number of key factors came together at the end of 2011 to give residential property markets a small boost, but some experts have tipped that real estate values will simply remain stable for the start of the new year.
According to CommSec economist Craig James, the recent positive shift in housing markets recorded by the RPData-Rismark index for November could indicate that "home prices are flattening or close to flattening".
Writing for Property Observer on January 3, James asserted that the "small increase" registered over November in 2011 proved the local markets were quite resilient, despite the past 11 months of sluggish growth.
James said: "CommSec expects Australian property prices to grow around 5% in 2012, but as always there will be major deviations from city to city and across regional areas."
The economist noted that the basis for the prediction rested on key areas such as a strong job market and two previous rate cuts.
"If you had been thinking about purchasing an investment property, now is the time to get your homework and paperwork in order," said James.
"Certainly other asset markets don't offer the same attraction as residential property."