House Price Growth and Residential Property

real estate market: Key pointsNAB predicts house price growth of 1 per cent nationally this year Unit prices expected to fall 1.2 per cent this year Foreign buyers and local investors make up a falling share of the market National Australia Bank latest residential property survey, taken in late 2015, shows sentiment and expectations amongst real estate market participants at +1, according to Australian Broadcasting Corporation. That is down from +10 in the third quarter of 2015, and well below the long-term average of +13. Related Story: Building approvals soar, led by apartment rebound Map: Australia A decline in property investment and foreign buyer activity is expected to reduce house price growth to just 1 per cent over the next two years. NAB said sentiment weakened most noticeably in New South Wales and Queensland, but was lower across the country. Despite Victoria leading sentiment, survey respondents predicted that Queensland would have the largest home price gains over the next two years . The possibility of a more severe correction in the Australian housing market is still remote, although the risks have escalated.NAB economics team Victorian prices were expected to creep 0.7 and then 1 per cent higher over 2016 and 2017, with New South Wales forecast to see no growth and South Australia/the Northern Territory and Western Australia expected to continue seeing modest price falls. "Weakening fundamentals have already seen the market starting to cool, suggesting the best of the price gains are probably behind us," commented NAB chief economist Alan Oster. Victoria now has the nation strongest market sentiment and is the only state tracking above its long-term average, a finding that concurs with recent home price data from Core Logic RP Data. (news.financializer.com). As reported in the news.