Home News House price surge fastest since 2003

House price surge fastest since 2003

Font size :
Nila Sweeney

By Robert Carry

Australian home prices grew by 3.7% in the September quarter - the highest quarterly growth seen in six years.

The Australian Property Monitors (APM) September Quarterly House Price Series report found that the rapid turn-around has been fuelled largely by more expensive houses - which were hardest hit during the downturn.

Matthew Bell, Economist for APM said, "The extraordinary recovery at the upper end of the market experienced in June in most major capitals has now spread to the rest of the country. Nearly all capital city quarterly growth rates have been driven by strong sales of more expensive homes."

 In Sydney, the country's largest housing market, median prices in the most expensive 50% of suburbs grew by nearly triple the rate experienced in the least expensive suburbs. "Another quarter of improving employment results and the share market rising by 20% has meant that buyers are stepping into the oversold top end of the market to purchase properties at prices still below their late 2007 highs," adds Bell.

The report also suggested that sellers who sold properties into the booming first home owner market over the past year have used sale proceeds to upgrade to more expensive homes and units, placing even more pressure on upper end markets.

Despite concerns about softening demand from first home buyers affecting the property market following the decrease in the first home owners boost in September and increasing interest rates, mortgage brokers are reporting increases in enquiries from property investors.

It can be confusing to know whether to get a variable rate or fixed rate mortgage, and what features are important. That's why it's important to not only check the right rates, but make sure that you're getting the right features in your home loan. Get help choosing the right home loan

Mortgage News and Articles

To break monopoly, many smaller lenders could become banks To break monopoly, many smaller lenders could become banks

The proposed change could break the Big Four’s monopoly over the mortgage market and help families get cheaper home loan rates Read more

Borrowing against the home: A strategy to pay for aged care Borrowing against the home: A strategy to pay for aged care Such debts can generally be divided into long-term and short-term loans ... Read more

NAB slashes growth forecasts for houses, units NAB slashes growth forecasts for houses, units Numerous factors, including tighter credit rules and the growing supply of new stock, have reined in Australia’s seemingly unstoppable housing market boom ... Read more

Broking industry wants to reform commission structures Broking industry wants to reform commission structures It argues that scrapping commissions altogether would push up the interest rates paid by consumers ... Read more

More mortgage news and articles

Sponsored Links

Friday, Jul 21, 2017
Top Featured Rates
Top Bank Rates

Get help choosing the right home loan

Whether you're a first homebuyer, looking to refinance, or investing, it's important to have the right loan for your needs. Just fill in a few details below and one of our trusted mortgage advisers will contact you.

A quick & easy way to find the right home loan
  • Purpose of mortgage
  • Household Income
    $
  • How much do you want to borrow?
    $
  • How much deposit do you have?
    $
  • How much is your house worth?
    $
  • How much do you still owe on your mortgage?
    $
  • What type of mortgage do you have?


  • How much is your new home?
    $
  • How much do you want to borrow?
    $
  • How soon do you want a mortgage?
Next
  • First name
  • Last name
  • Where do you live?
  • Phone number

Special Offers

Related Keywords