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Date Published : Tuesday, February 05, 2008
The uncertain outlook of the global stock markets is likely to hit house prices closer to home over the next year, an expert has claimed.
Consumers searching for home loans to buy a property are in for a rocky year, with looming interest rate rises and the affects of the global credit crunch hitting the finances of consumers and families across the country.
According to a report by Australian Property Monitors (APM), the number of factors - including rising petrol and energy prices - could mean buyers cut back on splashing out on a new home, forcing house prices to slow down.
General manager of the APM Michael McNamara told the Australian: "This year will be one of uncertainty. With a looming interest rates rise, petrol price hikes and the share markets, it will provide uncertainty for buyers.
"The markets in Perth are already displaying a weakness, while in Melbourne and Perth the market seems very likely to slow down."
However, new figures from the Australian Bureau of Statistics (ABS) have found that house prices show no signs of halting.
In Adelaide, for example, the average price of a home rose by 20.2 per cent during 2007 while prices of houses in Brisbane grew faster - by 21.6 per cent in the 12 months to December.
According to the ABS, the average Melbourne house increased in price by 18.1 per cent, while Perth experienced the smallest rise in 2007. The Western Australian average house price rose just 1.1 per cent.
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