It looks like the Australian housing market will be a ‘tug-of-war’ this year with low interest rates pulling hard on one end of the rope and economic uncertainty joining forces with subdued prospects for economic, income and employment growth at the other.

BY MICHAEL YARDNEY
I expect the economic side of the equation to win out in the near term, influenced in the first half of 2012 at least by continuing global financial turbulence. This is likely to cause the Reserve Bank of Australia to drop interest rates once or twice in the first half of the year and this should underpin our property markets.
BY CATHERINE CASHMORE