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House price fears in Australia are being overblown: Moodys

Fears over a housing bubble in Australia have been commonplace in the past few months as prices have risen time and again, but while some cities are seeing prices reach a dangerous area, the nation as a whole is not yet in worrying territory, Moodys has said.

Values of homes have risen considerably in the past year, largely due to the fact interest rates set by the central bank have remained at historic lows.

And Moodys admitted that if prices in Sydney and Melbourne continue to accelerate at current rates, it could cause an issue for the market's sustainability in the long run.

However, Moodys said that the nationwide ten per cent growth so far in the year to June 30th, when interest levels are considered, has seen prices remain at a level that could be considered close to fair value. 

It added in its report that with this considered, it currently has no fears about the prospects of a housing bubble bursting any time soon. 

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