NEWS
House prices will defy the economic gloom to edge higher this year, thanks to confidence in the market "returning in spades," ANZ bank said today.
While the global recession has wiped 20 percent or more off the value of average house prices around the world, Australian property prices have softened by just 1.2 percent in the year to the end of May.
ANZ said record affordability, a chronic imbalance between supply and demand, and ongoing population growth will support the market. "The Australian economy has proven to be remarkably resilient to the recessionary conditions currently gripping much of the globe – so has the Australian housing market,"ANZ economists said in the bank's monthly housing report.
Meanwhile, population growth continues to run at its highest level in 40 years, supporting an "unprecedented" call for housing which will push prices higher, ANZ said.
"We expect prices to edge higher for much of the remainder of 2009," the bank concluded.
Source: ninemsn
Published: 26 June 2009
