Categorized | International

Australian Home Prices Increase

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The average home prices in Australia demonstrated a slight increase during the month of March. Residential real estate prices increased by two-tenths of a percentage point in March, which is likely due to interest rate cuts.

 

Housing prices stayed relatively flat during the first quarter of 2012. While there was no significant increase during the three-month period, the stabilization of prices was an improvement over the steady declines that were exhibited during the previous year.

 

Some Australian residential real estate markets are performing better than others, though that trend is fairly normal and healthy. It is unlikely that the market will see significant growth in 2012, though economists are hopeful that the market will inch higher, or at least stay relatively flat throughout the year.

 

It wouldn’t surprise many economists and realtors, though, if a big city like Sydney posted strong results during the year, as the real estate fundamentals are fairly strong there.

 

Although the news of a slight increase in residential real estate prices was a positive indicator for the market as a whole, there was some unexpected negative news as well in the housing market. The number of approvals granted to build new homes fell almost eight percent when it was expected to increase by a half percentage point.

 

The decline in the number of approvals is likely due to lenders and officials tightening their reigns to ensure that the market does not fall into creating an glut of homes in its inventory. They would prefer to keep the inventory at a minimal level to ensure that prices remain strong.

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About Nancy Raven

Nancy is the main writer for the International section of the website. Sometimes she also helps Drew out on the Finance/Mortgage section as well.

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