Real estate experts and market observers surveyed by the National Australia Bank (NAB) have become more optimistic about real estate price growth over the remainder of 2019 and up until 2020.
The residential property index of NAB returned to positive territory for the first time since mid-2018, recording an increase of 26 points in September to reach a higher than average level of 18%. According to Alan Oster, chief economist of NAB, improved sentiments in the housing market have been reported in all states, with the exception of Western Australia.
"The results suggest that the Australian housing market is on the road to recovery," he said.
Read also: Investors fuel housing gains in Sydney, Melbourne
The forecast for national real estate prices for the next 12 months was also optimistic, especially in Victoria and New South Wales.
"This marks a clear reversal from the previous survey in which Victoria and NSW were supposed to be the weakest states in terms of price growth and the only state where prices were likely to fall," Oster said. .
He predicts that prices will rise by the end of 2019, with Sydney and Melbourne posting gains of 1.8% and 0.7% respectively.
"We expect moderate growth of 4.5% in capitals by 2020," Oster said.
While low interest rates and rules of easing operating rules will help increase investor participation, access to credit remains a source of concern for some real estate experts.
"That being said, the credit crunch has again been called as the main impediment to the development of new housing and access to credit is the biggest hurdle for buyers of existing real estate across the country." said Oster.
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