Rising home loan values match property prices

Thursday 31 December 2009

Article by Mozo

The value of home loans has risen to correspond with increasing house prices.

Capital city home prices rose by 11.3 per cent during the 11 months to November 2009, ABC reports.

According to figures from private sector property analysts RP Data, the national median dwelling price, which includes apartments as well as free standing houses, saw a 1.1 per cent rise during November, the report added.

However, Tim Lawless RP Data’s research director, suggested price growth was likely to be moderate next year.

"Coming into 2010 we will see higher interest rates starting to dampen the market," he told the news provider.

Sydney has the nation’s most expensive housing, with the median dwelling worth $475,000, while Hobart was cheapest with a median dwelling price of $310,000, ABC said.

The news may encourage Aussies to buy property and compare home loans before the predicted interest rate rises take effect. Last week the Australian Associated Press reported that home loan rates are expected to rise by at least one percentage point next year.

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