Over the next year, the market is most likely to be flat, however savvy investors should see some capital gains, according to RP Data’s Property Pulse.
In RP Data research team’s last Property Pulse report for 2012, they predicted a varied performance over 2013, requiring investors to be even more diligent with their choices.
“Property markets in Sydney, Brisbane, Perth and Darwin, where home values have corrected more than the other capital cities, may be the markets to watch for improving conditions,” RP Data predicted.
“We are already seeing signs of a recovery in these markets, particularly in Perth and Darwin.
“On the other hand, markets such as Melbourne, where capital gains have had a strong run, are more likely to see weaker conditions. The number of properties being advertised for sale across Melbourne has ramped up very quickly; new listings have remained fairly constant however, the total number of homes available for sale simply hasn’t been absorbed due to a slowing rate of sale.”
Further interest rate cuts were also suggested to be a likelihood, in “light of the revelations of a slowing Chinese economy and a substantial decline in commodity prices, and the likelihood of much slower economic growth over the third quarter of 2012.”
However, the main wild card is still the global economy, which remains largely uncertain and may further dampen consumer confidence.
“As a result, any significant growth in values across the national housing market would appear to be some way off,” claims RP Data.