The steady growth in property prices over the early part of the year will generate good opportunities for brokers during the remainder of 2009.

Home values in Australia have continued their upward trend, registering growth of 3.9 per cent over the first five months of 2009, according to RP Data-Rismark International’s national Home Value Index, released today.

During the 12 months to May 2009, Australian home values increased by 1.6 per cent – which takes into account losses recorded in 2008.

The monthly index recorded an overall increase of 0.9 per cent for the month of May.

Tim Lawless, RP Data head of research, told Mortgage Business the improvement in market conditions during 2009 had been largely driven by an increase in owner-occupier activity.

“Most of the growth comes from first home buyers utilising the FHOG to buy into the lower end of the market, which helps propel the low end of the market upwards,” Mr Lawless said.

“Investors and first home buyers typically compete for similar housing stock. As first home buyer demand starts to taper leading up to the wind back of the first home buyer’s boost, it is likely investor participation will grow.

Regardless of who is creating the growth, Mr Lawless said the increase in home values will encourage people to invest.

“This consistent rise in home values gets more people through the door, which ultimately means more and more people will be seeking the expertise of a broker,” he said.