There are signs that the property market is reaching the bottom of the cycle, but prices are unlikely to see a sustained recovery this year.
These are the predictions of Residex, following the release of January data that shows monthly median price falls for houses and units in most of Australia’s major cities.
“Prices continued to weaken in almost every capital city over January. Our data suggests we are moving beyond the bottom of the cycle, however the trend is not pronounced,” said Residex CEO John Edwards.
The national median house value fell by -1.21% during the month of January, according to Residex figures, while the median unit price dropped by -0.67%.
Of the nation’s capitals, Melbourne saw the biggest falls, with median house and unit values recording falls of -1.65% and -1.8% respectively. Sydney saw falls of -1.18% for houses and -0.68% for units, while Brisbane held firm for houses but saw a median unit price drop of -1.15%.
The biggest winners were units in the ‘WA Country’ category, which saw a median price rise of 2.56% over the month, followed by Queensland country houses (1.73%).
“On an Australia-wide basis we do not look as if we are through the worst of the correction phase. In most capital cities, while we may have reached the bottom of the cycle, there is no strong movement towards positive territory,” said Edwards.
“The next few months will be crucial in determining where markets head. However, as the reality of the actual performance of housing markets becomes evident we can expect to see further weakness and potentially ongoing price corrections.”
Source: Residex, January 2012
Is now the time to buy as the market bottoms out? Have your say on our property investment forum.
Are buyers returning to the market?
Rate hold a missed opportunity to boost property
Doom and gloom prevails, but property bucks the trend
Whether you are looking to buy your first home, move home, refinance, or invest in property, a mortgage broker can help. Access loans from all the major lenders, get help with paperwork – plus there is no charge for this service. Get help from a local mortgage broker
Top Suburbs :
Get help with your investment property
Do you need help finding the right loan for your investment?
When investing in property, it is important to make sure that you not only have the lowest available rate that you can get, but also have the correct loan features for your needs.
Just fill in a few details below and we'll then arrange for a local Aussie Mortgage Broker to contact you and work out what features or types of loans are right for your needs. We'll even help with the paperwork. Plus and appointment is free.
We value your privacy and treat all your information seriously - you can check out