ANZ: House prices 'likely to be relatively stable in 2011'

Prospective home loans customers hoping to purchase a property this year may find that the price of their chosen acquisition is unlikely to decline significantly, according to a recent report.

The Pan-Regional Housing Outlook published by ANZ indicated that the forced selling of homes will stay at low levels because of the strong employment figures, reports the Age.

Paul Braddick, head of property research at the bank and author of the study, commented: "Rising interest rates and deteriorating affordability will cap price gains and we expect little movement in house prices over the year ahead."

He added that the market is likely to stay relatively stable assuming that there are not dramatic interest rate hikes or declines in employment figures.

This comes after economists at three of the big four Australian Banks – Westpac, National Australia Bank and ANZ – suggested that there is likely to be an increase in interest rates next month.

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