 Prices rise nationwide
Melbourne house prices jumped a record 8.5 per cent this year, and prices are expected to keep climbing. Prices rose to a record high index value of $454,524 in July.
The national research director of research firm RP Data, Tim Lawless, is pleased that prices are growing and look set to stay strong, despite the threat of rising interest rates and the reduction to the first home buyer grant.
"Not only has Australia's residential property market outperformed the other major Western markets, it has also provided superior returns compared to shares, commercial property, superannuation, hedge funds and private equities," Mr Lawless said.
"Australia's residential market has been further supported by low mortgage default rates, at just 0.6 per cent, compared with 5 per cent in the United States and 3 per cent in the United Kingdom."
Data also indicates that house prices have risen in all capitals by an average of 5.9 per cent this year
Home values have been boosted by low interest rates stimulating the housing economy.
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