Aussies 'uncertain about future of house prices'

Monday 17 October 2011

Article by Mozo

uncertainty among Aussies about the future of house prices in the country.

Aussies 'unsure about future of property prices'

The latest Westpac-Melbourne Institute Consumer House Price Expectations Index has revealed that Aussies still remain uncertain about future trends in the cost of property.

About 39 per cent of the respondent said they thought prices will increase, while one-quarter said there will be a decline.

One-third of those polled asserted that there is unlikely to be any change.

The index fell from 15.3 in July this year to 9.0 in October, which puts it at the lowest level seen since May 2009.

Matthew Hassan, senior economist, commented: "Continued price weakness may see further mark downs in expectations. However, this will be balanced against the rising prospect of interest rate cuts from the Reserve Bank of Australia."

The data also revealed that there is a greater level of optimism among first-time buyers than among more seasoned investors.

Figures from the Australian Bureau of Statistics published last week indicated that in August there was an increase in the number and value of home loans approved by financial institutions when compared with the preceding month.

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