House price growth finally slows

The pace of Australia’s house price growth finally slowed last month, it has been revealed.

Research by Australian Property Monitors found that the country’s median house price rose three per cent in the first quarter of 2010 – down from nearly five per cent growth at the end of last year.

The body said that five interest rate rises and the end of the first-homeowners’ grant in December had eased price growth, but added that Sydney’s median house price had already been pushed up to more than $600,000.

Commenting on the findings, AMP economist Matthew Bell told the Australian that the price growth for houses in the most expensive half of the market was nearly double that of the more affordable suburbs.

The news may interest Aussies who wish to compare home loans in search of the most affordable offers. This week, a report by the National Housing Supply Council suggested that Australia’s continuing housing shortage will mean that by June 30th next year, the national housing supply gap will have increased by a further 50,000.

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