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Property market resilient in face of downturn

The news keeps getting better and better for first home buyers and investors, as the property market shows resilience in the face of a tough economic climate.

Research conducted by The Housing Industry Association (HIA) found that new home sales increased by 4.2 percent to 8,210 in March aided by more affordable property prices.

Australian Property Monitors (APM) has confirmed that while average prices for residential homes rose by 0.1 percent in March, they were down 3.7 percent on the 12 months to March 31.

Lower interest rates and a boost for first home buyers have helped to boost the property market, by making property more affordable for home buyers and more attractive for investors says APM economist Matthew Bell.

“The combination of the introduction of the first home owners boost last October and the dramatic reduction in mortgage rates from their peak of nearly 10 per cent in August, to around five per cent in March, has improved affordability for many Australians looking to purchase their first property,” Mr Bell said.

Industry groups have been pushing the Government to extend the boost to the first home buyers grant beyond the June 30 deadline as it has helped to revive the property market in light of the flailing economy and has also made it easier for first home buyers to enter the market.

But the Government will not budge on the issue, claiming that they set a deadline and were going to stick to it. (Read the full article here)

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