The outlook for 2013
No matter what other factors may be influencing property prices, without market confidence, little growth can be expected. The good news is that buyer confidence is on the increase. The end of 2012 saw a return of investors to the market, an excellent sign of increased confidence. This trend is expected to continue.
It's presumed by most financial commentators that interest rates will decrease in 2013, encouraging investors to put their money back in property. In the instance that the global market sees a recovery, we may not see interest rates drop any further than they already have. Either should inspire a surge of confidence on home shores.
Large rises in property values are not foreseen in the next year. Instead, small but steady increases are expected. While it's not likely we will see another price drop, the quick gains of years past are not in sight either.
Perth, Darwin and Sydney have the strongest outlook of the larger cities. Regional growth is expected to experience slightly greater gains, worth keeping in mind [...]