The Australian property market and home loan trading are well set up to improve in 2012, according to new analysis released by RateCity.
Lower property prices, two successive interest rate cuts and an increasing willingness on the part of lenders to cut their costs in order to attract customers have all been cited as reasons for the prospective boost.
"This year, the mortgage market looks set to recover from the past two years of slower growth," RateCity's chief executive Damian Smith said.
However, he urged some caution on the part of investors, noting that the market is unlikely to see a return to the impressive figures from five years ago.
The latest figures from the Australian Bureau of Statistics showed the number of home loans approved rising in November 2011, with almost 51,000 financed over the course of the month.
Despite these positive signs, the Real Estate Institute of Australia recently called on the Reserve Bank of Australia to make further interest rate cuts in the coming months.
Posted by Steve Douglas
