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Doom and gloom appears premature

Discussion in 'Real Estate' started by Billv, 1st Nov, 2008.

  1. Billv

    Billv Getting there

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    15th Jul, 2007
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    1,796
    Location:
    Sydney, NSW
    Off the back of falling mortgage rates this past month (by about one percentage point, depending on your lender), the property market looks like it has been kicked into action.

    Interestingly, the number of properties that have hit the Australian market for the first time has increased substantially. Almost 14,000 new properties were listed last week, which is about 2000 more than the previous week.

    This is, of course, no surprise; vendors are obviously encouraged, anticipating there will be more buyers given the cost of debt is now lower and first home buyers have had yet more cash thrown at them.

    The mood seems more positive and certainly the Australian property market seems less vulnerable than overseas markets. Unlike most developed nations, there is plenty of room for further cuts in the cash rate here.

    Don't be surprised if there is another 100-basis-point reduction by the end of the calendar year. Even then, the Reserve Bank will still have plenty of room to keep cutting if the economy needs further stimulation.

    more
    http://www.domain.com.au/Public/Art...dex&headline=Doom and gloom appears premature
     
    Last edited by a moderator: 1st Nov, 2008
  2. Smartypants

    Smartypants Well-Known Member

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    Location:
    NSW
    Now that would be nice.
     
  3. Billv

    Billv Getting there

    Joined:
    15th Jul, 2007
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    Location:
    Sydney, NSW