House prices set to fall further in 2012
Article by Mozo
Home loan customers could see house prices fall even further in 2012, which may leave some Aussies facing negative equity issues.
According to some real estate experts, the Australian property market has fared much better than many other countries around the world since the economic downturn took hold, but there are still fears that some people may be left "under water" next year, Realty Biz News reports.
However, cases of negative equity – where a person ends up owing more than their house is worth – are still thankfully quite rare, although a four per cent drop in house prices in 2011 has not helped the matter.
The percentage of late mortgage payments also fell from 1.77 per cent to 1.42 per cent in September, which is also an encouraging sign.
Experts are now predicting that house prices could decline by up to five per cent in the new year, which may prove testing for the Aussie property market.
President of the New South Wales division of the Australian Institute of Conveyancers Terry Allen recently told the Daily Telegraph that new stamp duty payment laws have led to a surge in the number of people buying properties.
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