Property sales subdued in 2011, new figures show

The number of properties being sold across Australia in 2011 fell away sharply, new figures have confirmed.

According to RP Data, uptake of home loans throughout the country was remarkably low, as the uncertain economic climate appeared to take its toll.

Despite the fact there was a double reduction in interest rates sanctioned by the Reserve Bank of Australia towards the end of the year, it remained a very subdued 12 months for the housing market. The Housing Industry Association also revealed recently that the cost of owning a home has fallen slightly in recent months.

However, sales at a national level declined by 25 per cent in 2011 – which represented a 16-year low for the property market.

Research analyst at RP Data Cameron Kusher believes that the high interest rates at the start of the year and general cautious nature of Aussies left house sellers in the lurch.

"Clearly 2011 was a weak year for housing transactions," he remarked, before adding that things might start to look up if further cuts to interest rates are made in 2012.

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