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Bank Declares Recovery on House Prices in Australia
05/26/2010

According to the Country’s Reserve Bank, the real estate industry in Australia has no bubble on it however it would not be enviable for the present wave of growing property prices to turn into one. The predicted decreased started when the Australian Bureau of Statistics house price index increases up to 20% in the year to March, however the RBA said that it can be handled still.

From the statement of the bank’s head of financial stability, Luci Ellis, stated the house prices are now in the state of recovering from the reported decline of 2008 to post increases of between about 12 to 15%.

’We do not have a credit fuelled speculative boom on our hands. However, it would not be desirable for the current situation to turn into one. It will therefore be important for lenders to remain prudent in their standards,” she said in a speech.

However there are some studies showed that there are signs that some market are decreasing. In Sydney, its latest Residex figures show, where prices increased 17% year on year in April, and auction authorization rates declined by more than 10% to 62.5% following a buoyant start to the real estate year with clearance rates averaging about 80% in the first three months.

Source: Property Community News