Wilson & Tarbey: 2011 Was A Bad Year, We’ll See A Brighter 2012

26/01/2012 1:12 pm

 

During an interview with Robert Harley, from Financial Review TV, Andrew Wilson, senior economist with APM and Charles Tarbey, Century 21 Australia Chairman the results of 2011 and the outlook for real estate in 2012 were discussed.

Wilson agreed that 2011 was a bad year for house prices, but a better last quarter. “Our latest data shows that national median house price rose over the December quarter. Although it rose only marginally, the rise was the first since December 2010.”

Wilson equated the rise to low interest rates and a the rise in house prices in Melbourne, where “we saw median house prices up by 1.1% over the December quarter.”

Wilson predicted a better 2012. “I think we’ll see a brighter 2012, Rob, but it won’t be generalised. I think we’ll have patchy recoveries in various markets. Certainly the economics of various markets will determine the level of recovery.”

Charles Tarbey supported Wilson’s prediction, noting that he has noticed that the number of listings are coming down. “It’s coming down, and it’s coming down over this time last year, significantly. So the supply line is starting to dry up.”

When asked to comment on the prospect of a collapse in Australian real estate as a result of the deepening global economy troubles.

Tarbey quoted American President Clinton’s famous “it’s the economy stupid” line. “I think the economy will drive the housing market, as it always has. I think that given the prospect that we still have of a strong economy – particularly in the resource exposed states – that housing markets will remain resilient and solid.”

Wilson and Harley also discussed which areas investors should be looking at. Wilson said that he would “go to the areas right now where there’s plenty of property available.” He added that he “would start to make significant discounted offers on properties.”

See clip here: Property Outlook 2012 Financial Review TV