Home prices fall for third consecutive month

Home prices fell for the third month running in August 2010, new research has found.

According to the latest RP Data-Rismark Hedonic Australian Home Value Index, home prices were down by another 0.2 per cent last month.

Commenting on the result, Commonwealth Securities economist Savanth Sebastian suggested the property sector was inevitably undergoing a period of consolidation.

Speaking to news.com.au, he said: "The cumulative rate hikes, substantial boost in construction activity and double-digit growth in property prices over the past year have given potential home buyers a valid reason to be more circumspect about future purchases."

His comments suggest more Aussie property buyers may also be looking to compare home loans before committing to a purchase. The new home value index comes as the Australian Bureau of Statistics (ABS) also revealed that new building approvals were down in August by 4.7 per cent.

That was despite improving job opportunities, with the demand for new workers rising ten per cent in the three months to August.

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