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Housing closer to the bottom, but the boom's not back

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A three-pronged boost to the mortgage market over the last 10 days has sparked predictions the housing downturn in Sydney and Melbourne could reach its low point later this year.

If that ends up being the case, many home owners would not doubt breathe a sigh of relief. For prospective buyers, however, the message remains one of caution. After the sharp fall in prices recently, don't expect a return to the old days of quickly rising prices, even if things do start to stabilise soon.

A stream of positive news for housing has sparked predictions the market will bottom this year.Credit:Jessica Shapiro

To recap: last week we learnt that interest rates will almost certainly fall next month; banks will likely allow customers to borrow larger amounts; and negative gearing and capital gains tax concessions will remain untouched due to the election result.

Some experts believe this triple whammy should put a floor under house prices over the coming months, by encouraging more demand from buyers. The government's plan to guarantee some first home buyers' mortgages from early next year should also........

© Brisbane Times