Australian property prices 'set to decline further'

Those applying for home loans to purchase a property are likely to see the cost of buying a house fall in the coming months.

This is the prediction made by campaign manager at Prosper Australia David Collyer, who argued the "era of towering prices" in the country's real estate market has come to an end.

Figures from RP Data have indicated home values have been in decline for 12 months and Mr Collyer argued that "falling values and falling volumes over an extended time are decisive indicators of a new bearish trend".

The expert stated the house price finance figures released by the Australian Bureau of Statistics – the lowest in 32 years – were the "fatal puncture" for the real estate bubble.

Government plans to ban mortgage providers from issuing exit fees were recently criticised by John Symond, founder of Aussie Home Loans, who told the Canberra Times that banks will raise charges in other areas to compensate.

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