2012 set to be a year of market recovery
While some industry commentators have bemoaned the slow movement that has characterised the ...
While some industry commentators have bemoaned the slow movement that has characterised the residential property markets in 2011, one organisation has highlighted the potential available in the New Year.
Australian Property Monitors has released a report into the year that was, while also taking a projected view into what 2012 may hold.
It notes that even though the median house price fell 4.2 per cent over the last 12 months, this may have had more to do with internal market conditions than purely external factors.
Back in 2010 there was a big push from first homebuyers seeking to purchase property - this was fuelled by a number of government incentives.
It could be that this action - originally meant to make housing more affordable to those outside the market at the time - may have inadvertently driven prices up outside of what newcomers could reasonably afford, although there is currently no finalised research available to support this.
Whatever the cause, the rise in the median price of residential real estate meant that there was a widening gap between it and the average wage.
Subsequently, the market was unable to sustain its high level of growth over the long term and 2011 saw a price correction that may have helped to bring dwellings back into line with what consumers are willing - and able - to pay.