THE value of housing across Australia rose 1.63 per cent in the first quarter of this year after a fall in borrowing rates lured buyers into the market, a survey shows.
The RP Data-Rismark national dwelling value index rose to 457.191 points in the three months ended March, from 454.618 points at the end of 2008.
First home buyers were particularly active in the quarter as they rushed to take advantage of a boost to the Federal government’s first home owners grant.
A fall in base lending rates to a 45 year low of 3.25 per cent in February, which in turn helped lower bank mortgage rates to an average of 5.7 per cent, also contributed.
The survey noted a 0.9 per cent spike the value of residential property in February and a further 0.6 per cent gain in March.