Falling house prices and the way Australians buy and sell property could be the feature of the Australian housing market for 2011 according experts and new statistics.
Australian property prices dropped by 0.2% in November after the Reserve Bank of Australia (RBA) decided to raise interest rates. The Australian property market has seen steady house price gains as demand increased from immigrants and Australians moving up the property ladder
Head of SQM Research Louis Christopher also says the figures indicate the first half of 2011 will see the property market enter a “downturn” that, if left unabated, could see the RBA even reduce interest rates.
“I think we’re going into a downturn here nationwide, and that may spread to Sydney as well. And this could move to a point where the RBA could consider cutting interest rates if it continues,” he says.
The house price predictions come as private house sales see an increase and some now predict that Australian home owners may move to selling privately rather than using auctions.
Robert Larocca told Australian based SmartCompany ââ¬ÅThis time last year we had lots of auctions, and low private sales, whereas the inverse is going to be true now, that after weeks and weeks of these clearance rates, that will encourage some people to go into private sales. This is what happened in 2008 after the strength of 2007.”
The Australian property market will see some new challenges
- Experts predict that new home sales to remain weak during 2011 as interest rate hike remains imminent
- Auctions market slow as experts predict more private sales in new year
- $850 million Gold Coast property project in receivership
- Increase in property listings will put downward price pressure in early 2011
Australia had been singled out as one of the top-performing overseas property markets during 2010 – alongside Canada, France, Sweden, Switzerland and the UK – thanks to a combination of a high rate of demand matched by “low unemployment rates and tight supply ââ¬Â¦ all of which added to the upward pressure on prices
The fact that Australian housing market may be subject to over supply and house price declines could make for ideal conditions for overseas buyers seeking to move or invest in Australian real estate.
Author Nicholas Marr
