Top-end houses 'depressing the market'

Wednesday 06 May 2009

Article by Mozo

Despite the onrush of first-home buyers signing up for low-interest home loans in recent months, the national housing market continued to fall for the fourth quarter in a row, the latest official stats show.

With a fall of 2.2 per cent seen in the first three months of the year, the annual slump has now reached 6.7 per cent, with the Australian attributing the overall decline in large part to the plummeting property prices in the country’s most prestigious postcodes.

Regionally, the biggest falls were seen in Perth, Sydney and Melbourne, figures showed.

The paper warned that the situation may be made worse if unemployment figures continue to rise, as this is likely to put first-home buyers off signing up to a new home loan due to fears about job security.

On Tuesday (May 5th), AccountantsRus chief executive Adrian Raftery told the Herald Sun that first-timers looking to compare home loans should hold off a little while and plough money into a savings account to build up a healthy deposit instead.

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