Correction in Melbourne property prices 'to be expected'

The recent correction in the cost of property in Melbourne is in line with the expectations of experts, home loans customers may be interested to learn.

According to the RP Data-Rismark house price index, the seasonably adjusted value of homes in the city declined by 0.3 per cent in September, following a dip of 0.4 per cent the preceding month, the Sydney Morning Herald reported.

However, research director at the firm Tim Lawless noted that after the "fantastic" growth run experienced in Melbourne a correction in the market is not an unexpected development.

"They have probably overshot the market a little bit … so a correction after such a huge rate of growth shouldn't be that much of a surprise," he stated.

Earlier this month, the Westpac-Melbourne Institute Consumer House Price Expectations index revealed that one-quarter of respondents believe the cost of property is set to decline in the coming months.

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