Wednesday, June 15, 2011

Buying Opportunities Increase as Australian Housing Market Slows

Investors on the hunt for properties around the country might now have the chance they dreamed of for the past few years. 

It's well and truly a buyers' market out there, with the Real Estate Institute of Australia (REIA) releasing figures for the March quarter that show declines in property values across most cities.

President David Airey says the housing market has slowed slightly, due to cyclical changes.

"Both house and other dwelling median prices decreased by 2.5 per cent to $532,695 and 1.8 per cent to $422,947 respectively," Airey says.

"This represents a deceleration in property prices after a period of solid growth in previous quarters. We're witnessing the impact on prices of increases in cash rates during the second half of last year, rises in the cost of living have restrained household spending and the natural disasters in Queensland have also significantly affected the property market.”


With the exception of Sydney and Adelaide, all Australian capital cities recorded median house price decreases.
"Melbourne house prices recorded the largest drop over the quarter, down six per cent to $565,000. The largest increase in median prices was evident in Sydney, up 1.1 per cent to $637,258."

REIA says loans have also decreased; down 17.6 per cent for owner-occupier loans and 18.2 per cent for investment loans.

"In summary, we're seeing a softening of the housing market explained by economic factors, not a bubble starting to burst," Airey says.

Source Article: www.apimagazine.com.au

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