Residential property prices might have peaked in 2010 as housing prices will remain flat or even drop over the next six months as big mortgage brokers report a 20 per cent drop in loan numbers.
Aussie Home Loans managing director John Symond said the company’s new loan volumes had plunged 20 per cent in the past four months because the housing market was soft.
”The general consensus is the market is down around 20 per cent in volumes,” he said. Australia’s housing market is past the peak of the cycle and will probably continue to soften over the next six months, he said.