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New reports says housing market set for recovery

New reports says housing market set for recovery

02 Jul, 2011 - 2 min read

New reports says housing market set for recovery

July 02, 2011

Business research and forecasting company BIS Shrapnel has released a new report stating the housing market will begin to recover within the next two years.

The report firmly rejects the current speculation of an impending housing market crash and says the so-called housing bubble will not burst even though prices have seen a decline in recent months.

In its Residential Property Prospects 2012 to 2014 report, the company predicts moderate price growth between now and 2013 with some capital cities, such as Sydney, Perth and Brisbane, set to achieve growth into double-digit figures by 2014.

The report acknowledged the current sluggish state of the market but said the following factors would prevent further decline over the next few years:

Continued economic growth spurred on by the resources boom, which will have a flow-on effect particularly in Queensland and Western Australia where income growth is set to be the strongest
An anticipated increase in population growth, which has slowed since 2010
Continued high levels of employment. By 2013, unemployment is expected to fall below 4 percent and, combined with overseas migration increases, this will drive up the demand for new dwellings
First homebuyers will not stay out of the market forever. Even if interest rates are higher and house prices mean they have to move to a more affordable area and type of dwelling.

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This article is over two years old, last updated on July 2, 2011. While RateCity makes best efforts to update every important article regularly, the information in this piece may not be as relevant as it once was. Alternatively, please consider checking recent home loans articles.

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Laine Gordon

Head of Public Relations

Laine Gordon is the Head of Public Relations at RateCity and an experienced journalist and research specialist. With a background in news and feature writing, covering finance, media and even food (a passion of hers) at Reed Elsevier publications, Laine brings almost two decades of experience to the team. Having covered major areas of interest to the general public from hip pocket issues to rising and falling interest rates and the impact to mortgages, credit and saving in Australia, she is passionate about researching and telling people’s stories to help others make better decisions about their own finances.