labors low rates to spur spring housing boom

And we get the pathetic little Libs crawling around on their stomachs trying to tell Ozzies that we are in a crisis.

You just cant trust Tony Abbott.


Read more: http://www.smh.com.au/business/low-rates-set-to-spur-spring-housing-boom-20130902-2t10c.html#ixzz2dmrVguKy

Australian home values have posted their strongest quarterly gain since the end of the 2010 boom, with signs that record low interest rates are creating conditions for a new boom this spring.

The performance comes as figures show the number of investors piling into the market hit a record in one state and residential construction activity has staged its first rally in three months.

RP Data-Rismark report dwelling value rose 4 per cent in the three months to August, posting the highest quarterly rate of capital gain since April 2010, right before the last boom began to fizzle.

In Sydney, dwelling values shot up 5.4 per cent and Melbourne rose by 4.8 per cent. They increased 3.7per cent in Canberra, 3.4 per cent in Darwin, 3.1 per cent in Perth and 1.7 per cent in Brisbane.

''It's definitely the low interest rates that's driving this activity,'' said RP Data analyst Cameron Kusher. ''The thing from here will be what happens in spring. It's looking like a pretty good spring selling season - the amount of stock on the market is fairly low and clearance rates are quite strong.''

Last weekend, nearly 2000 homes went under the hammer around the country and the clearance topped 75 per cent. It was a record 84 per cent in Sydney and a robust 75 per cent in Melbourne, according to analyst groups.