 Property prices good at home
Economic analysis concludes that Australian property prices should remain steady and possibly climb throughout the year, despite global economy fears and rising unemployment.
ANZ Bank said the possibility of increased unemployment is a risk for Australia, although what effect it has on housing is not certain.
"Policy stimulus and tight fundamentals, due to record high population growth and weak building levels, continue to exacerbate the shortage of housing - this has supported the market until now and will continue to do so," ANZ said.
The unemployment rate stands at at 5.7 per cent, but is predicted to rise to 8.5 per cent by the middle of 2010 as the slowing economy forces employers to reduce costs and this may mean they must let staff go.
However despite most other developed countries posting big falls in house prices, Australian property values have been quite resilient, sliding only 1.2 per cent in the year to May 2009, according to ANZ who cited data from property value monitoring group Residex.
Homes in the UK and the USA have fallen in price. But strong population growth in Australia, along with government stimulus packages and falling interest rates have supported the local markets.
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