Housing market slows as prices fall

Thursday 28 October 2010

Article by Mozo

Australia's housing market is showing signs of a major slowdown after new research revealed a national price growth of only 0.1 per cent for the September quarter.

According to Australian Property Monitors (APM), Sydney and Melbourne were the only capital cities to record small price rises during the third quarter of 2010 at 0.7 per cent and 1.2 per cent growth respectively.

Elsewhere, the story was one of falling prices as Darwin saw a decline of 1.9 per cent, Brisbane of 1.7 per cent and in Adelaide of 1.6 per cent.

Commenting on the findings, Yvonne Chan, APM head of research, said: "This quarter's results show the effect on prices of increased borrowing costs following the normalising of interest rates, together with falling auction clearance rates and lower levels of housing finance."

Prospective buyers aiming to improve their financing options could choose to compare home loans in search of the best deals. Ms Chan stated that APM expects prices to remain flat or fall slightly for the remainder of the year, with such a trend due to continue into 2011.

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