5 Dec 2011

Australian house prices continue run of falls

6:57 am on 5 December 2011

Latest figures show Australian house prices are on course for their longest downturn in a decade.

The latest RP Data-Rismark survey shows house prices across the capital cities fell by 1.4% in the three months to the end of October and are down 4% over 10 months.

Radio New Zealand's Sydney correspondent says agents cite a general lack of confidence, poor affordability and a surge in supply.

More than 300,000 homes were put on sale over the spring season, twice as many as last year.

Still, so far, the weakness is concentrated in Melbourne and Brisbane. Sydney and Canberra are more resilient.

The industry is now pinning its hopes on last month's cut in the interest rate and the hope of more to come to bring buyers back.