Median House Price Falls for First Quarter
May 4th, 2008 | by winsonlee |
With the increase of interest rates by the Reserve Bank of Australia, it is expected that the housing market will slows down. After Australian Property Monitors announced the median price for property in Melbourne for the year end 2007, I made a prediction that the house price will not go up more then 5% this year. My prediction is according to the housing price trend in Perth. Fair enough for the first quarter the appreciation of the property in Melbourne is only 0.3%. So the worse is over or the worse is yet to come ? Everyone knows that the home loan interest rate now is at 9.47% and the first quarter shows that our inflation rate is still at 4.2% which is a major concern to Reserve Bank of Australia. Next Reserve Bank Board Meeting is on 6 May 2008. If the outcome of the meeting shows that there is a need to increase the interest rates, it will further squeeze the property market and you will see a lot more “Property for Sale” or “Property for Auction” sign displayed outside the house.
Source : http://www.homepriceguide.com/
