Consumers Lack Confidence in the Property Market
Consumers continue to exercise a cautious approach as home prices in Australia have fallen for the second consecutive year. Rather than ambitiously taking on home loans, Australians are taking a more conservative and measured approach.
During 2012, home prices in Australia’s eight capital cities eased 0.4% on average (RP Data/Rismark Home Value Index).
The greatest decrease was seen in Melbourne where home prices were down an average of 2.9%. In both Brisbane and Adelaide, price decreases of 0.8% were experienced.
In contrast, home prices in Darwin increased by 8.9%, in Sydney they increased by 1.5% and in Perth by 0.8%.
Cameron Kusher, RP Data Senior Research Analyst, noted that home prices in Australia are now 5.7% lower than they were when they hit a historic high in November 2010. Mr Kusher commented that recent interest rate cuts have not been adequately sufficient to stimulate growth in the property sector.
He said, “It has become clear that adjustments to official interest rates by the Reserve Bank are not having the same impact on consumers as they have in the past.”