House prices and shares up

05/08/2009

Median house prices surged up 4.2 per cent in the June quarter, the biggest rise since the boom of 2003, according to the Australian Bureau of Statistics. Melbourne prices were up 5.2 per cent and Sydney prices up 4.9 per cent.

Australian Property Monitors and Rismark, have been showing that house prices have been rising at a rate of about 1 percentage point a month. Further big price rises are likely to lead to concerns that first home grants and historically low interest rates are creating a house price bubble, rather than creating more new homes.

Share prices were up 10 per cent in the June quarter and have risen a further 10 per cent since June.

Retail sales were down in June by 1.4 per cent after three months of strong results, probably due to economic stimulus payments to workers and families. Department store sales were down 8.8 per cent.

Source: The Australian

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