Brokers can expect a brighter year ahead with residential property prices tipped to rise over 2009 after suffering minor setbacks in 2008.
According to BIS Shrapnel better domestic credit availability and the shortage of housing stock will see Australia avoid any sustained price declines like those underway in the US and UK.
“In Australia there is a clear undersupply of housing and an environment of housing shortages provides fertile ground for interest rate cuts,” BIS Shrapnel managing director Robert Mellor said.
Mr Mellor also explained that Australia’s mortgage market was less dependent on international funding sources than the UK and finance availability remained solid.
RP Data and Rismark agreed that the property market was showing signs of recovery.
Their data showed national property values declined by just 0.5 per cent over the three months to September, a welcome improvement from the June quarter where prices fell by two per cent.
Rismark managing director Christopher Joye said Australian residential price valuations, driven by favourable demand-supply dynamics, should increase in line with nominal GDP, suggesting house prices will rise by 80-90 per cent over the coming decade.
In the short term BIS is forecasting a gradual recovery in 2009 with annual growth between zero and three per cent across capital cities.
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