Australian real estate prices dip

The national average of home prices slipped 2.4% in September in Australia, although the statistic belies regional fluctuations. Queensland and Victoria saw significant drops that managed to pull down the average even though prices in New South Wales and Western Australia made modest gains. Analysts believe the market will regain traction in September 2013, but that right now demand is waning due to high construction costs, tight credit restrictions, poor employment and the expectation of higher interest rates. Meanwhile, rental growth increased for the month, although expectations are low for continued growth moving forward. For more on this continue reading the following article from Property Wire.

Nationally property prices in Australia have weakened and are expected to fall more this year, dragged down by Victoria and Queensland, before recovering in 2012, according to analysts.

The National Australia Banks Residential Property Index fell to -14 points in September, down considerably from -5 points in June. However, the index conceals considerable variation among the states, with conditions identified as being much weaker in Queensland, Victoria and South Australian.

New South Wales and Western Australia bucked the national trend and managed to produce small index gains.

Source: NuWireInvestor.com