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Economy

Keywords: Economy, House prices, UK, USA, Australia

The RICS Economic Brief for August reports that growth in the second quarter of 2004 was at the highest level for almost four years. Interest rate rises are leading to a decline in home buying activity but prices are stable. Meanwhile US house prices have soared at their fastest rate in 25 years between the months of April and June this year, according to figures released by the US government's Office of Federal Housing and Enterprise Oversight (OFHEO). Many economists have marked this as the apex of the housing boom. Despite an overall increase in home lending in July, demand from Australia's new home buyers continues to fall,signalling a slower year ahead for builders.