Property prices 'show strong growth'

The housing market is showing signs of recovery, the publication of new figures show.

In the three months leading up to June, Australian Property Monitors reveals a 3.3 per cent rise in the average property price, the strongest growth seen since the end of 2007.

Now standing at $484,308, the organisation points out values are roughly back to the levels recorded this time last year and are up from the $468,694 noted in March.

"The consolidation that began in the March 2009 quarter has now transformed into strong growth across the country," Australian Property Monitors economist Matthew Bell points out.

He adds that while a combination of low home loan interest rates, the first-home buyers grant and declining house values had helped to drive the housing market forward during the earlier part of this year, it has been the high-end market that has pushed property price increases over the June quarter.

However, those searching for a home loan could be interested to hear that properties in both Perth and Brisbane remain lower than this time last year.

Such figures come as claims that the country’s housing market is set to remain buoyant as the first-home buyers grant is set to end as property investors are ready to take up the slack by ploughing more money into purchasing homes.

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