House prices plunge as property downturn spreads | The Business | ABC NEWS

By ABC News (Australia)

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House prices have declined for the fifth month in a row, suggesting the property slump won't be stopping any time soon. The national property market has been hit by several headwinds in recent months, including three Reserve Bank interest rate hikes, and the federal government's decision to restrict negative gearing and increase capital gains tax. Ray White chief economist Nerida Conisbee said fewer properties were coming to market, while Cotality's Gerard Burg said there's lots of doubt about whether or not now is a good time to buy a home. Housing values are expected to keep falling, particularly if the Reserve Bank lifts interest rates again, which is now seen as more likely to happen. Meanwhile, one state has announced a crackdown on real estate agent underquoting. From October, sellers in Victoria will be forced to publish the reserve price of their properties at least seven days before it is sold or goes to auction. #ABCBusiness Subscribe: http://ab.co/1svxLVE Read more here

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