Home prices in Australia 'looking positive'
Article by Mozo
Australian property owners are likely to see an increase in property prices over the coming months as the economic pressures acting on the market begin to ease and conditions improve across the country, according to the latest research from RP Data.
The RP-Data-Rismark Home Value Index – a monthly gauge of the property market's overall health – found that property prices increased by 1.4 per cent on average across Australian capitals in September 2012.
RP Data national research director Tim Lawless predicted a quarterly rate of growth of around two per cent, which would represent the strongest quarterly expansion seen in the beleaguered housing market since May 2010.
This could be linked to macroeconomic factors, with the panic facing the eurozone earlier this year certainly playing a big part in driving down prices and generally dampening sentiment in the property sector.
However, consumers with home loans will be pleased to learn that conditions appear to be getting better.
"Improving housing market conditions are likely to be front and centre on the agenda of discussion items when the Reserve Bank of Australia (RBA) board meets next Tuesday," added Mr Lawless.
Indeed, one major factor in the sector's revitalisation could be the RBA's decision to cut interest rates, helping spark the economy into life and improving the trading situation for many companies across the country.
It is uncertain whether the RBA plans to take any further measures, however.
"The bank would be looking to avoid any further stimulation of the housing market while at the same time ensuring the interest rate setting is appropriate considering the high Australian dollar and sluggish level of consumer demand," predicted the RP Data chief.
David Bassanese of the Financial Review recently blasted suggestions that Australian housing is in a bubble, asserting that the current strong position of the property market is one it can sustain over the coming years.