 Housing prices rise in Australia
Australian homes are increasing in value, while other developed nations see price falls. According to RP Data-Rismark, house and apartment prices increased their value by 1.6% in the first quarter of 2009.
Due to cuts in interest rates, first home buyer grants and a low supply of housing, house prices in Australia have bucked the global trend.
"While the grant has certainly helped spark demand, the key driver of the housing market's resilience has been the fall in mortgage rates to 40-year lows,'' said Tim Lawless, RP Data's Director of Research.
Christopher Joye, managing director of Rismark International says Australia has fared well during the crisis and prices have been supported by lower rates. Mortgage rates have fallen to 5.7%, are are now at their lowest levels since July 1968.
While Britain experienced a 2.7% drop in prices over the same three months, the US housing market also suffered. House prices in the US fell 1.9% in February, falling 18.6% in the past 12 months, data from the S&P/Case-Shiller index shows.
Australian housing markets have been supported by the 49-year low interest rates and the boost to the first home owner grant. The Reserve Bank of Australia has been slashing the official interest rate since September last year, and the Rudd government has boosted the grant for first home buyers. The lower mortgage rates which followed the official rate being cut, have allowed many to afford to buy their own home, and others to upgrade to bigger property.
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