Medium-priced home market 'flourishing'

Tuesday 25 August 2009

Article by Mozo

An increased amount of home loans customers may have been appearing on the housing market thanks to a recent boom in property sales.

The mid-range properties, valued between $700,000 and $1.2 million, have been selling rapidly in recent months, according to a news.com.au report.

A result of lower interest rates, government incentives and a rise in first property sales, a marked rise in interest in houses up for auction has been witnessed across the country.

LJ Hooker analyst David Maher explained low stock, coupled with high demand has created a "seller’s market", which may prompt some house hunters to compare home loans soon.

He estimated the medium-priced houses are selling at auction 80 per cent of the time, whereas at the beginning of the year, this figure stood at 40 per cent.

"Auction clearance rates haven’t been this good in many years," Mr Maher said.

Meanwhile, the Sydney Morning Herald recently reported banks are withholding lending to first-time buyers.

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