Slow growth predicted for Australian housing market

House prices in Australia are forecast to grow by just 0.6 per cent over the course of this year, a survey by National Australia Bank has said.
According to the research, access to credit was the "biggest impediment" stopping people from buying homes and pushing prices up.
Most respondents to the survey expected the strongest growth in values to occur in Western Australia (up 1.1 per cent) and New South Wales and the ACT (up 0.9 per cent). The weakest area is expected to be South Australia and the Northern Territory, with respondents expecting a 0.2 per cent decline in home prices over the next year.
However, while prices are expected to remain fairly stable, investors and agents are more optimistic about the rental market.
They noted that the year will see higher rents, with survey respondents predicting an average 3.5 per cent increase in residential rents.
Western Australia, New South Wales and the ACT were again expected to see the biggest rent rises of 4.6 and 4.3 per cent respectively, while Queensland rents are only tipped to rise 2.5 per cent.