2012 was a mixed bag for property in Australia, with the market um-ing and ah-ing its way toward a cautious, gentle upturn, as the rest of the world covetedour homes.
The year kicked off with a fall in new home sales and an RBA decision to leave interest rates on hold at 4.25%.
The first interest rate cut of the year came in May, to 3.75%, in response to weaker than predicted economic conditions, with cuts following in May, June and October.
Rismark International CEO, Ben Skilbeck cautioned that even with a December interest rate cut, Australians would have to wait until early 2013 to see a meaningful housing market response.
Home values in capital cities finished the year with a rise across the board, except for Melbourne.
Confidence in the market has steadily increased throughout 2012. TheWestpac-Melbourne Institute Consumer Sentiment Index shows an upward trend since April, reaching the highest level in 12 months in November 2012.
The Index looks closely at when consumers feel confident about buying a dwelling, and that number has improved significantly across 2012, with the national index is now showing the highest reading since September 2009.
RP Data analyst Tim Lawless says this it's a clear indicator we're getting more confident about the property market and are optimistic about the new year.
The Commonwealth Bank-Mortgage and Finance Association of Australia (MFAA) home finance index, released in late October, found 75.8% of people believed house prices would grow or remain stable for the remainder of 2012, further signalling a confidence boost to round out the year.
realestate.com.au's second annual Housing Affordability Index (HASI) told a similar story.
Though 84% of survey respondents admitted upward pressure on living expenses was a challenge to their property goals, 27% said they expected their financial position would improve in the near term, and most states and territories forecast slow but stready improvement ahead. Gen Y was feeling upbeat about the long term.
As we finish up 2012, RP Data Rismark has revealed its last batch of property headlines.
- Best performing capital city: Darwin +3.1%
- Weakest performing capital city: Hobart, -4.5%
- Highest rental yields: Darwin houses with gross rental yield of 5.9% and Darwin Units at 6.2%
- Lowest rental yields: Melbourne houses with gross rental yields of 3.7% and Melbourne units at 4.4%
- Most expensive city: Sydney with a median dwelling price of $555,000
- Most affordable city: Hobart with a median dwelling price of $305,875
Reference: www.realestate.com.au
