Will Aussies compare home loans as property price growth slows?

Wednesday 29 December 2010

Article by Mozo

Australia's house price increases have slowed and are set to rise at a slower pace over the coming months, according to one industry expert.

Will slower price growth see more people compare home loans?

This could encourage a number of Aussies to compare home loans with a view to buying and taking advantage of lower prices.

According to Tim Lawless, national research director at RP Data, rising interest rates have "put the brakes on" property price rises this year, new.com.au reports.

The expert added that with forecasters predicting at least two more rises in 2011, price growth could slow further still.

Mr Lawless told the news provider that the Reserve Bank's rate rise of 1.75 percentage points since October 2009 has coincided with a recent "wind-down" in the market cycle.

"For 2011, we are likely to see vendor expectations change as slower market conditions come into play," he commented.

"Houses will take longer to sell and buyers will be negotiating much harder than they were in 2009."

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