Australia’s property prices are not expected to grow over the coming 12 months.
The property market has endured relatively subdued growth over the last three months, with some capital cities recording as little as 0.6 per cent growth.
And, according to Hometrack’s chief executive officer Brendan Darcy, the future doesn’t look any brighter.
“House price growth has been pretty subdued for quite a while now, especially in places such as Sydney. We did experience an uptick after the global financial crisis, when The First Home Owner’s Grant boost was introduced, which resulted in rapid debt growth,” Mr Darcy told The Adviser.
“That uptick in property values however, was proof that a relationship exists between debt growth and house prices. We see debt growth continuing to be very subdued and house price growth to be very low, or even negative over the next 12 months.
“This will be a challenge for sellers, but an opportunity for buyers.”