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A whopping 79% of properties across Australia were sold last weekend at auction, which is the second highest level of auction sales in nearly seven years.
 
September 2009’s figure was the highest, the time when the Federal Government's First Home Buyers' Boost scheme was increasing demand, reports Yahoo!.
 
Sydney and Melbourne remain to be the strongest performers, as they carried the substantial proportion of sales, said CoreLogic RP Data in its report. Sydney, for instance, has seen a 6.4% increase in its prices this year, while Melbourne experienced 3.9% gains.
 
Brisbane had a slight jump of 0.1%, but both Perth and Adelaide’s housing prices went down 1.6% and 0.2%, respectively.
 
"At this point in time we think the [Sydney] market's about 25% overvalued and, if our forecasts come in for this year, it'll actually get up to about 40% overvalued," Louis Christopher of SQM Research told ABC.
 
"It's probably about the second highest overvaluation point we've ever recorded, the highest being back in 2003 when, on our numbers back then, the market was about 55% overvalued."
 
Christopher also argued that despite the climb in auction sales, there is “generally not much upward momentum” in the Australian housing market apart from Sydney and Melbourne’s.
 
"We don't believe, for example, there's a national housing bubble," he said.
 
"We can definitely pinpoint areas where the markets have not moved for a very long time and they are undervalued compared to incomes. So, even with the cheap credit, it hasn't influenced every market everywhere, because local economic factors have taken a greater hold."
 

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