Buyers 'spooked' by global turmoil

Tuesday 23 September 2008

Article by Mozo

It seems many first-home buyers have been spooked by the recent crisis in global financial markets.

According to the Australian, home auction halls in the Sydney area saw subdued levels of activity over the weekend, suggesting that it is unlikely the housing market is going to bounce back over the spring.

So too in Melbourne, buyers showed less of an interest, with the auction clearance rate for the weekend down eight percentage points when compared to the week previous.

“You just have to look back to January to see there has been a huge slowdown. It’s no longer a case of looking back 12 months – we’re well down on the figures from six to eight months ago,” said Australian Property Monitors expert Liam O’Hara.

However, figures for Brisbane and Adelaide showed something of a fight-back.

Elsewhere, the Herald Sun has reported that potential first-home buyers are being offered cash incentives to keep saving hard for a deposit.

Under the new scheme, Aussies will be offered 17 cents for every dollar saved if they take out a special bank account.ADNFCR-1761-ID-18792283-ADNFCR

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