Home loans seekers find house prices flat

Australians seeking cheap home loans will find the amount they need to borrow could stay largely unchanged unless there is an alteration of interest rates, as new data has indicated that house prices were static last month.

The latest RP Data-Rismark Index has revealed prices in state capitals were virtually unchanged in August, following increases in June and July.

In both Sydney and Melbourne the typical home rose in value by a mere 0.1 per cent.

RP Data research director Tim Lawless said: "I would be very surprised if we saw any material improvement in property values before the end of the year."

Potential housebuyers may therefore have their attention most keenly fixed on interest rates, as this could be one key determinant of their mortgage costs, although shopping around may be the key to ending up with the best possible deal.

Research by RP Data published last month indicated there are 238 districts in the country where it is currently cheaper to buy than rent.ADNFCR-1761-ID-801441471-ADNFCR