6. January 2012 18:34
Because of the RBA’s cut to the official interest rates, property prices finally received a little boost and property experts expects more of the same market in 2012. RP data released home prices rose in November 2011 by 0.1% and the slight rise in November was the first increase in home prices since December 2010.
CommSec Economist Craig James expects Australian property prices to grow around 5% in 2012 and he expects RBA’s rate cuts in November and December will help lift demand and prices for housing. According to RP Data Analyst Cameron Kusher says that while the interest rate cuts will help boost sales activity, prices are unlikely to move. Kusher nominates Sydney, Brisbane, Perth and Canberra will perform better and they look some improvement in a small positive band and expect a period of flat growth.