More Aussies being blighted by negative equity

A growing number of Aussies are being affected by declining house prices throughout the nation.

New statistics released by RP Data have indicated the amount of houses that are worth less than they were originally bought for increased by 20,000 in Victoria alone in the past three months, the Herald Sun reports.

This means people who took out home loans to cover a house with a certain value are being forced to pay back more money to their bank or lender.

Indeed, the number of cases where a homeowner is paying more than the current value of their home rose to 3.8 per cent from just 2.4 per cent in the December quarter.

This is despite the fact that RP Data suggested last month that the housing market throughout Australia was "relatively flat" in February 2012.

Research director at the organisation Tim Lawless told the news provider that anyone who purchased a property in Melbourne after prices peaked in October 2010 are likely to be blighted by negative equity.

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