Time to compare home loans as property market booms

Monday 07 December 2009

Article by Mozo

Homebuyers are rushing to secure a property before Christmas despite recent interest rate rises, News.com.au reports.

Both Melbourne and Sydney hosted busy property auctions at the weekend, with the Australian Property Monitors recording 891 auctions in Melbourne on Saturday and 466 in Sydney, according to the news provider.

That is despite last week’s 25 basis points increase in official interest rates which has made low interest home loans less likely. The interest rates hike was the third 0.25 per cent rise in as many months.

Melbourne’s most recent recorded property clearance rate of 72.6 per cent is 21.7 per cent higher than a year ago while Sydney’s 65.1 per cent clearance rate is similarly 20.6 per cent higher.

Last month, a survey by Mortgage Choice found that 41 per cent of respondents were planning to buy property in the next two years.

"Hopefully, increasing demand from this buyer group will stimulate more housing construction," said Kristy Sheppard, corporate affairs manager for Mortgage Choice.

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