 Housing values increase
Australian house prices are bucking global trends and actually rising, not falling, during the past year.
According to residential researcher RP Data-Rismark's Home Value Index, values rose 5.9 per cent between January and September, even better data than the peak seen in February last year.
Rismark
International managing director Christopher Joye commented that housing prices have been peaking since June.
"We believe the housing market will
grind out further modest gains over the course of the next 12 months,"
Mr Joye said yesterday.
Population growth, low interest rates and a shortage of housing contribute to the figures. The demand on housing drives prices up in most areas of Australia.
Darwin led the growth with values increasing 10.8 per cent to a median price of $466,903, while Melbourne values rose 8.5 per cent, taking prices to $454,524, and Sydney's housing prices were up 6.6 per cent to $537,396,
Our mortgage default rates in Australia are lower than in other developed countries. Standing at 0.6 per cent in Australia, when you compare this with 5 per cent in the US and 3 per cent in Britain, these figures show promise for our local economy.
John McGrath, chief executive of McGrath Estate Agents, said the reduction to the first home buyer grant would have some negative impact but was confident that the property industry will remain strong.
However, when the boost to the grant ends, and interest rates start to rise as they inevitably will at some point, this housing market may see a dent to the growth but not a decline, according to Mr McGrath. He believes the lower end of the property markets may suffer slightly, but the top end homes will improve as the economic data looks more encouraging.
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