Prices for homes in Australia have risen in the first half of 2008, according to the Real Estate Institute of Australia (REIA). The REIA report showed median home prices rising across the country to A$459,216 at the midway point of the year, up a slight 0.05% for the quarter and 6% for the previous year. Despite a decrease in housing prices, Sydney still leads the way with a median home price of A$542,000. Of all the major cities, Hobart has the most affordable homes with a median price of A$325,000.
One of the reasons for increasing home prices is the lack of housing to meet the needs of a growing country. This has led to both increased prices and increased rental returns across the country. Vacancy rates are at record lows in most of the major cities, though the Western Australia capital of Perth, which had seen huge price increases in recent years, saw a reduction in demand in the second quarter.
“The housing market has cooled significantly in the first half of 2008 following a sustained period of higher interest rates and rising living costs” says REIA President, Noel Dyett.
Warren O’Rourke, National Corporate Affairs Manager with Mortgage Choice, agreed with Mr Dyett and added “These figures reflect the importance for property owners to think of property investment as a long-term strategy. As with any market, there are ups and downs to be ridden out. The key is to understand your goals, research thoroughly and buy a suitable property at the right time.”
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