Australian housing market in a precarious state
On the face of it, Australia appears to have handled the global economic downturn a lot better than other countries.
Indeed, a huge property market collapse – the likes of which have been seen in the US, UK and other parts of Europe – has not materialised down under, but this is still a distinct possibility.
RP Data shows that demand for home loans has declined significantly in the past few years and property owners have been forced to sell their homes for a lot less than they had hoped.
This, the Australian reports, has seen house prices tumble in most parts of the country and turnover in the real estate industry is at a 16-year low.
Only 375,000 properties were sold last year and economists are warning that an increase in unemployment figures could see the bottom fall out of the housing market.
While this is obviously bad news for property owners looking to sell, the current low prices could encourage more first-time buyers to enter the market before a recovery gets into full swing.
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