Interpac Business and Migration Solutions Melbourne Australia

(November 1, 2010)

AUSTRALIAN house prices growth is slowing, with prices rising 0.1 per cent in the third quarter after a 2 per cent rise in the June quarter.

The market had forecast no change in the September quarter.

The Australian Bureau of Statistics house price index today also showed the weighted average price of established houses in Australia's eight capital cities was up 11.5 per cent from a year before.

JPMorgan said the September quarter data shows the continuing steady deceleration in prices following the peak of a 5.5 per cent gain in the final quarter on 2009.

“We are not forecasting any substantial correction in prices, but the absence of first homebuyers will test the market’s ability to hold up under lower transaction volumes,” said economist Ben K Jarman.

“We continue to forecast modest house price growth over the coming quarters of 0-1 per cent quarter on quarter, though it is entirely possible that the monthly private indicators show the odd month-on-month fall.”

The house price index for Sydney fell 0.9 per cent in the third quarter, and rose 11 per cent from a year earlier. Melbourne had the largest quarterly increase, at 2.7 per cent.
 

(Source:theAustralia)