Melbourne market bottoms, Sydney still in decline

ANZ Bank said the Sydney housing market would see price falls of between 1 and 2 per cent in the coming year, followed by price growth of 2 to 3 per cent the year after. ANZ Bank said the property market in Melbourne market had probably already bottomed. ANZ said house prices were 15 per cent overvalued nationwide, but said further price falls could be prevented by rising wages. ANZ said the housing market would reach its floor this year, while continued wages growth and flattening house prices would lead to a balanced market in 2008. The bank said the overvaluation of house prices had eased from 20 per cent to 15 per cent in the past year because of wages growth and falling property values in Melbourne and Sydney.