
House prices surge but some homeowners face having to sell up | The Business | ABC NEWS
House prices rose for the fifth straight month in June as falling interest rates boosted market confidence.
The latest home value index from property research firm Cotality showed national dwelling values up 0.6 per cent for the month.
Every capital but Hobart saw values rise, with the Tasmanian city recording a fall of 0.2 per cent.
While regional markets were previously outperforming the capitals, the trend flipped in June, with the major cities recording a higher rate of growth.
Darwin led the monthly gains, followed by Canberra, Perth, Brisbane, Sydney, Melbourne and Adelaide.
Falling interest rates have driven momentum in the property market. The Reserve Bank is widely expected to cut interest rates by a 0.25 percentage point at its next meeting on July 7-8.
This can't come soon enough for some homeowners, who are struggling to pay their mortgage and face losing having to sell their home.
Data from Cotality found mortgage arrears are rising with 1.7% of Australians behind on their home loan repayments in the first three months of this year.
Rising house prices are helping to cushion the blow, allowing some of these homeowners to sell up before their properties are repossessed.
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