Housing Prices

In economic news, research has shown that capital city housing prices in the first 11 months of 2009 increased by 11.3%. The increase in November was 1.1% - the 11th consecutive monthly gain.

The implications are that with need for housing unlikely to be met by supply that this strength will continue. With higher rates and the unwinding of the first home buyer scheme I can't see it being to the same degree. Some economists suggest the RBA may tighten in Feb in response to strong housing prices buy there are still a lot of figures to come to be able to make such a conclusion.