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Screws tighten on home buyers

CHRIS ZAPPONE The Age
Screws tighten on home buyers - Australia - House Prices - Home Buyers


House prices may surge about 20 per cent or more in some of Australia's largest cities over the next three years, driven higher by on-going shortages.



House prices may surge about 20 per cent or more in some of Australia's largest cities over the next three years, driven higher by on-going shortages.

Adelaide - previously considered among the more affordable cities - may lead the advances, with prices likely to be 23 per cent higher by June 2012 from a base of June 2009, according to the QBE LMI Housing Outlook.

Sydney prices may jump 21 per cent in that period, while Melbourne prices may be 19 per cent higher, the report said.

The increases are likely even with the expected rebound in interest rates as the economy recovers. The Reserve Bank last week lifted official interest rates from near half-century lows to 3.25 per cent and signalled more rate rises to come.

''While interest rates are forecast to rise over 2010-2012, the outlook for the Australian housing market looks positive,'' said QBE LMI chief Ian Graham.


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