The latest report on the Australian property market from ANZ suggests that house prices may continue to fall slightly in 2012, but not because of any inherent weakness in the market.
While the global economic downturn may play a role in driving down consumer confidence, the market itself remains in a relatively health position, ANZ has claimed.
Gains in house prices over the last 25 years have been encouraged by falling interest rates and increases in household income and are not based on unsustainable figures, according to the report.
"Despite the continued concerns about significant Australian house price overvaluation from some commentators, housing market fundamentals remain supportive," said report authors David Cannington, senior economist at ANZ, and Paul Braddick, head of property research at ANZ.
Housing affordability is also forecast to improve in 2012.
The latest report from Australian Property Monitors suggested median house prices in the country had increased marginally in the last quarter of 2011.
Posted by Craig Francis
