Home prices remained stable in October 2010 but subsequent interest rate rises and a greater supply of housing is likely to see falls in the coming year.
According to recent RP Data, for the three months to October 2010, capital city housing values were up in Canberra (2.4 per cent seasonally adjusted), Darwin (1.7 per cent), Sydney (0.8 per cent) and Melbourne (0.5 per cent). Falls were recorded in Perth (down 3.8 per cent seasonally adjusted), Brisbane (down 1.6 per cent) Hobart (down 0.6 per cent) and Adelaide (down 0.1 per cent).
This suggested that the property market is slowing. In addition, the 2010 October data doesn’t include any effect from the November 2010 interest rate rise, which was expected to cause property market to cool further.
There is also a build-up of properties for sale, with 23 per cent more homes available for sale now than there were were 12 months ago.
So 2011 might be a good year for buyers and investors if the housing prices will fall as predicted.
Will be interesting to see how long prices will stay down for in Brisbane. I think about 12 months then a slow incline. Some are predicting 2013 to be a really good year for property investment.