The Australian residential real estate market is likely to see price falls of between five and ten per cent next year, it has been claimed.

Professor from the University of Western Sydney Steve Keen told the Sydney Morning Herald people should expect to see the sector decline in 2012.

"The main force that will drive prices down is precisely the same force that drove them up: the acceleration of mortgage debt," he asserted.

His predictions appear to be backed up by the latest data published by ANZ, with The Economy News citing figures from the financial institution that show the Australian property market is slowing down.

The report claims the country's cooling economy will be reflected in the housing market, noting investors remain cautious.

However, the ANZ study did point to a slight increase in the number of first-time buyers entering the market, which David Cannington, a representative for the firm, attributed to improved affordability following interest rate cuts and falling house prices.
 

{loadposition user38} source: http://www.propertyshowrooms.com/australia/property/news/australian-house-prices-expected-fall-2012_311813.html