Home loans: June sees 'strongest quarterly growth in house prices' since crash

Wednesday 30 September 2009

Article by Mozo

House prices saw one of the strongest increases since the financial crisis erupted in 2007.

The latest Home Price Guide, published by the Australian Property Monitors (APM), revealed that nationally, values rose by 3.3 per cent.

Sydney and Melbourne saw the highest climbs with 3.7 per cent and 5.8 per cent respectively, which may be good news for those looking for low interest home loans in the cities.

Commenting on the figures, Matthew Bell, economist for the APM, said it was the high-end of the market that stimulated the growth.

Despite the forthcoming end to the government’s first-time buyer package, Mr Bell did not foresee any problems.

"As the First Home Owner Boost begins phasing out in September, demand is expected to remain strong," he said.

He explained that house hunters and home loans customers will take advantage of low interest rates and look to previous periods of falling prices as a "driver" in their decision to buy.

Recent research conducted by St George’s Bank revealed that many suburbs have cheaper property, including the Melbourne districts of Chadstone, Brunswick and Flemington.

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