Improving median house prices in NSW are showing that confidence is returning to the property market, according to the Real Estate Institute of New South Wales (REINSW).
The December REINSW Property Profile showed the median house price in the Sydney metropolitan market at $594,000. This was an increase of 6.1 per cent on the median price recorded 12 months ago and a 4.2 per cent rise on the September quarter.
REINSW CEO Tim McKibbin said the results showed that sentiments were improving.
“With confidence returning and stimulus in the form of interest rate reductions of 125 basis points in 2012, I believe that the green shoots of improvement are evident and a platform for a far brighter future in 2013 has been constructed," he said.
In recent years, Australia had been unduly influenced by overseas markets that had not been performing very well, Mr McKibbin said.
“The reality is that many of those markets have little impact on the Australian economy at all," he continued.
“Over the last six months, Australians have realised that our economy and our trading partners are reasonably robust. The confidence that has come from that realisation has begun to surface and is evident through an improvement in the share market."
According to Mr McKibbin, there was an improvement in property prices and employment rates.
“Property prices are now returning to more traditional levels and we will start to see vendors coming into the market more strongly over the next 12 months,” he said.
“We should also see transaction levels increase, particularly in the more affordable areas of the market.”