Next housing boom beginning now

After five quarters of decline, twenty one thousand mortgages were started in the December 2008 quarter, a rise of 12% , says figures from the Market Intelligence Strategy Centre. Analysts are predicting the beginning of a new housing boom in late 2009.

"If you combine the last rate decrease with news that there's going to be another decrease, rental yields going through the roof, shortage of supply of property and the first-home owner's grant, it's a perfect storm of a positive nature," Mr Forsyth said. "We're creating the next housing boom, or bubble potentially."