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Jessica Darnbrough
After years of sluggish activity, the property market is expected to make a full recovery this year, with price growth returning to 2010 levels.
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Speaking to The Adviser, RP Data’s research director, Tim Lawless, said he expects to see full recovery in house prices this year after they found the floor in the last quarter of 2012.
Statistics from RP Data show property prices fell 1.2 per cent across the nation in December 2012.
Thankfully, this downward trend was reversed in January, with data showing a 1.2 per cent increase in house prices that month.
“This data is a positive sign for the Australian property market,” Mr Lawless said.
“I think it is safe to say the property market is now on the path to recovery and, by the end of 2013, I think we should start to see values return to their 2010 highs.
“While that does not mean we will see any strong growth conditions, especially from a broader perspective, we do expect to see the housing market, which is about 4.5 per cent lower than when it peaked in 2010, to reach those previous highs.”
Mr Lawless’ comments were largely echoed by other property commentators, including Australian Property Monitor’s Andrew Wilson who said that a rebound in prices nationally was expected.
Dr Wilson qualified this by pointing out that the level of recovery would differ from city to city.
“It is no coincidence that the better-performing housing markets in 2012 reflected better-performing economies, particularly in regard to unemployment levels," he said.
"With a rising sharemarket and an improving international outlook, the general economic landscape and prospects remain optimistic, which is unequivocal good news for Australia's recovering housing markets."
