Home loans customers to pay less in capital cities

The cost of accommodation in Australia's capital cities declined in the year up to June 2011, which may mean home loans customers will be able to negotiate lower prices on abodes in these locations. 

According to the latest RP Data Home Value Index, June marked the sixth consecutive month in which there was a correction in the cost of property.

Tim Lawless, research director at the firm, commented: "Market conditions are clearly being dampened by low levels of consumer confidence fuelled by interest rate speculation and global economic jitters."

Mr Lawless noted that the average selling time has fallen to 52 days, down from 58 days in March, which may suggest that there are more home loans customers out there looking for a new house.

Over the June quarter, house values dropped by 2.5 per cent and 2.7 per cent in Western Australia and Queensland respectively.

This comes after researchers for Australian Property Monitors observed that over the last year, the cost of a home in Melbourne has fallen by 2.1 per cent.

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