House prices 'could soar'

While the recent raft of low-interest home loans and falling house prices have been welcome relief to many first-home buyers who have been struggling to get into their own property, some experts are warning that the market may not be subdued for long.

In a special report examining the issue, Sunday Telegraph Andrew Carswell has reported that there could be a sharp correction in house prices, suggesting that first-home buyers may do well to up their efforts to find a home quickly instead of holding out for further rate cuts.

Property analyst John Edwards told the paper that the key thing to look out for is employment figures.

“The areas that are in close proximity to industry/manufacturing areas or small business probably have some more suffering to do,” he reckoned.

Elsewhere, the Herald Sun has warned that, according to Ibis World, the people most likely to see their jobs go in 2009 will be car salesmen, real estate agents and investment bankers, although brickies, boat builders and fishermen are also going to feel the pressure.ADNFCR-1761-ID-18968543-ADNFCR