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Majority of homeowners concerned about house prices

The fear that Australia's property bubble will burst has been around for some time, with many people across the nation worried there will be a correction of some sort after years of double-digit growth. 

And now, reports suggest the majority of homeowners across the nation are worried about the potential for their house's price to drop at some point in the future. 

According to the September CoreLogic RP Data TEG survey, some 68 per cent of homeowners across the nation are worried the market is now vulnerable to corrections. However, one positive is that this is lower than we have seen in evidence in recent times. 

At the last survey, 75 per cent said they were worried about a 'significant fall' in house prices, so the lower reading this time around is indicative of a property market where people are actually feeling more secure about the short-term prospects at least. 

CoreLogic RP Data said the main concerns stem from the fact that property is such an important market for Australia. At the moment, it is the biggest and most important asset class in the nation, estimated to be worth a staggering $6.2 trillion in stock. 

"While we don’t envisage dwelling values will fall substantially, the probability of declines in Sydney, and to a lesser extent in Melbourne, after such a strong run of capital gains isn’t unlikely," said CoreLogic RP Data head of research Tim Lawless. 

"Home values are already trending lower in Darwin and Perth. It was less than three and a half years ago that capital city dwelling values fell by 7.4% between October 2010 and May 2012," he added.

The survey also looked at reasons why the property market has seen such significant increases in price in recent months, with 95 per cent of people saying foreign investment is behind the rises and while only five per cent said they don't believe that this is the case.

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