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House price fears in Australia ...

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. 

All information provided is of a general nature only and does not take into account your personal financial circumstances or objectives. Before making a decision on the basis of this material, you need to consider, with or without the assistance of a financial adviser, whether the material is appropriate in light of your individual needs and circumstances. This information does not constitute a recommendation to invest in or take out any of the products or services provided by SMATS Services (Australia) Pty Ltd or Australasian Taxation Services Pty Ltd.

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