2012 is set to be a year of recovery for most Australian housing markets according to the Australian Property Monitors ‘State of the Market‘ report to December 2011.
The report’s author, Dr Andrew Wilson, a Senior Economist for the Australian Property Monitors, predicts that following a 4.2% fall over the year to October 2011, national median house prices should recover to rise between 3 to 5% over 2012. He noted that housing markets had entered a correction phase in 2011, but mixed economic performance, natural disasters and frgaile consumre confidence exacerbated the reduction of buyer activity through 2011.
The rate of the forecast recovery varies significantly across the country with Brisbane, Perth and Darwin leading the way at 5 to 10%, Sydney and Canberra at 3 to 5% and Melbourne, Adelaide and Hobart at only 0 to 3%.
The forecast Brisbane performance follows one of the worst results for the nation with median house prices down nearly 7% over the year ending October 2011. The January floods did contribute to this result. The vastly improved result forecast should eventuate off the back of a continuing resources boom, dwelling shortages, population increases, rising incomes and improvement in confidence according to the report.
Law Property Australia’s Principal, Colin Law, noted that the demand for Brisbane properties does seem to have picked up already in 2012 with enquiry numbers up in January. The firm’s stock of new properties is however still healthy with many builders able to supply house and land packages, new display homes and apartments.