Australia is amongst the world's most stable property markets.

Friday 11 January 2013

Article by Mozo

Australia has been predicted to have one of the worlds most stable housing markets for 2013 and despite the increased affordability in home loans, it is expected that there will be no major increase in house prices for the near future.

New house being built due to low home loan interest rates.

Australia was also given a favourable mention for it's mortgage market, where arrears are expected to remain low, due to low unemployment and recent policy rate reductions to stimulate the non-mining economy, according to credit rating agency Fitch

According to the HIA (Housing Industry Association), the effect of Government grants and the reduced cost of home loans are starting to show in Australia's property market, with an increase of 4.7 percent in new house sales for November 2012. This comes after multiple months of consecutive decline.

The report by Fitch notes "relatively high affordability indicators for Australia" which are "largely driven by high average house prices." And according to homesales.com, rental and capital returns will reach new highs in 2013 - 2014 before slowing down again for 2015.

Aussies eager to take advantage of the current window of low interest rates should begin by comparing home loan rates to take full advantage of the competition in the home loan market among the nation's major banks and home loan lenders.

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