2012 house prices 'impossible to predict'
A new report from BIS Shrapnel which claims that house prices will surge as much as 19 per cent by 2012 deserves to be held up to public scrutiny, SQM Research’s Louis Christopher has announced.
Speaking to news.com.au, the analyst said that there were "too many x-factors" in play to accurately forecast what the housing market will look like three years down the line.
Future Reserve Bank interest rate rises are among the things likely to influence house prices in the long term, while any further extension of the first-home buyers grant may also have an effect.
"We believe its nigh-on impossible to forecast out that far ahead given so many conflicting forces out there in the marketplace," said Mr Christopher.
His comments came after floods of readers responded to the report, with many denouncing it for its bullish attitude to housing market growth.
Meanwhile, the Reserve Bank has offered a slightly more reserved short term outlook for the housing market, pointing to recent modest improvements in house prices as a sign of further recovery in the coming months.
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