The Age has reported that “boom” conditions are likely to remain in check in 2014.
Dr Andrew Wilson, Senior Economist with Australian Property Monitors maintains that the underlying drivers remain problematic for sustained high levels of house price growth next year.
Unemployment rate is rising and is predicted to continue to rise. Similarly, wages and profit growth remain subdued in a low inflation economy with a stagnant stockmarket continuing to constrain growth in the prestige market.
Prices growth will be solid dependent on a sustained revival in the economy and unemployment falling to or below 5 per cent.