"what the " lol

Here is the Header report in yesterdays hearld sun

Report forecasts house price surge

Wednesday October 14, 2009, 3:46 pm

A report is predicting house price rises of more than 20 per cent over the next three years in some capital cities.

QBE Lenders' Mortgage Insurance has released its Housing Outlook for 2010 to 2012, which is forecasting price rises of between 12 and 23 per cent in Australia's capital cities by 2012.

The largest rises are expected in Adelaide and Sydney.

Adelaide is forecast to have a 23 per cent rise in house prices because of its current relative affordability, while a 21 per cent increase is predicted for Sydney based on the city's housing shortage and price stagnation since 2003.

The report also expects strong price increases in Melbourne (19 per cent) and Darwin (17 per cent), but weaker price growth in Brisbane and Hobart (15 per cent), with the most sluggish growth in Perth and Canberra (12 per cent).

Economic forecaster BIS Shrapnel researched and wrote the report, and its managing director Robert Mellor says concerns that removing the boosted first home owners grant would deflate the market seem unfounded.

"Upgraders are now back in the market, in fact really across all capital cities not just the eastern seaboard, and there's very clear signs over the last two or three months of the return of investor demand, so I think we can be fairly confident going into 2010 that we're not going to see a double-dip in the market," he said.

Mr Mellor says the booming population, and shortage of rental properties, means housing demand from first home buyers will remain strong.

"First home buyers are going to continue to be attracted by low interest rates and the fact that, in terms of the sums, in terms of purchasing verses renting at the moment, we're probably in the best conditions we've been at for purchasing over renting for ten years."

" It is logical that because building costs in domestic homes is riseing comercial prices will do similar or the same . "