FED:Overvalued house prices likely to stay

AAP General News (Australia)
12-16-2010
FED:Overvalued house prices likely to stay

An international report says Australian house prices could be overvalued by as much
as 10 per cent .. but strong population growth and rising income will continue to underpin
the market.

The report by the International Monetary Fund has found a link between episodes when
Australia has a strong a terms of trade .. the relative performance of exports to imports

In the past 20 years house prices have increased by almost 120 per cent .. and have
already recovered from the global financial .. with the rebound supported by the federal
government's more generous first time home buyer subsidy and a fall in mortgage rates.

AAP RTV cb/ar

KEYWORD: HOUSING (CANBERRA)

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