The Australian --- Page: 5 : 28 December 2006 Original article by David Uren
ABIX Summary
Macquarie Bank has released the findings of a study on home affordability. Rory Robertson, the investment bank's interest rate strategist, says homeowners seeking to trade up to a larger home have been a major factor in past housing booms in Australia. He says homeowners have tended to use the increased purchasing power created by lower interest rates to move to better homes in better suburbs, such as inner-city areas. This resulted in homes in such suburbs rising in value more quickly than outer suburbs in the last housing boom.
