According to Australian Property Monitors' Quarterly Housing Report, house prices achieved modest growth in the December quarter to complete 2010, but recovery will appear through the second half of 2011.
National house prices increased by 0.7 per cent over the quarter- though the price of units fell slightly by 0.8 per cent - with the annual growth rate slowing to 6 per cent.
Meanwhile Sydney house prices rose by 1.1 per cent in the December quarter, resulting in the median price now being $637,258 and thus making Sydney the most expensive city for houses.
Melbourne recorded strong growth for the year with a 14 per cent increase in house prices and a 7 per cent rise for units, though this is expected to ease throughout 2011.
Brisbane prices however, fell slightly for both houses by 1.4 per cent and units by 2.8 per cent in the December quarter, revealing the subdued market conditions during the year.
Dr. Andrew Wilson, Senior Economist, at Australian Property Monitors stated that the softening of price growth in the December quarter reflected the continued decline in buyer activity through 2010, and linked with a high number of properties being listed at the end of the year by vendors, trying to take advantage of earlier strong selling conditions.
The essentials for the property market remain sound, however with a strong economy, rising incomes and the continued housing shortage, we should see a recovery in the second half of the year.