Survey shows residential property price confidence high
Fifty per cent of people believe residential property prices will rise in the next quarter, according to a survey commissioned by the Commonwealth Bank/Mortgage & Finance Association of Australia.
The Home Finance Index found that 49.8 per cent of the 1,361 respondents to the survey believed that these prices would rise.
Commonwealth Bank executive general manager of Third Party and Mobile Banking Kathy Cummings said: "The property market is all about confidence and the survey confirms that good times are ahead, especially as interest rates continue to be at historic low levels, creating a situation where mortgage repayments are more affordable than rents in many areas."
After the official cash rate drop from the Reserve Bank of Australia to 2.75 per cent sparked multiple banks to lower their variable home loan rates, it is possible that the situation outlined in the statement from Ms Cummings could eventuate.
Data released from the Australian Bureau of Statistics certainly shows increases in house prices for the majority of the eight major cities.
Only Hobart showed a drop in price for residential properties with a 1.9 per cent decrease from March 2012 to March 2013, whereas all other cities grew from 0.9 per cent in Adelaide to a full eight per cent in Darwin for the period.